Foreign exchange analysts at HSBC note that GBP/USD spiked to highs above 1.2400 at the end of last week as the dollar came under pressure. According to the bank; “The move looks extreme relative to changes in relative 2y swap rate differentials which suggest GBP-USD should be closer to 1.20 than 1.23.” In this context, the bank recommends selling GBP/USD with a target of 1.2040. Increased speculation over Bank of England (BoE) rate cuts has undermined the Pound. Global equities have been unable to advance further amid reservations surrounding the global economy. This combination has undermined Pound support and ... (full story)