Not saying that sterling has hit a bottom or is going to rally but NEVER forget the old saying - "A market never looks as bad or as bearish as it does when it's on its low"
Yes and Yes. British Government has long-standing plans to join the EU. Pound going to parity with EURO, as a consequence.
Sure the pound is weak at the moment but why would Britain feel the need to join the Euro?In February 1985 the Pound/Dollar traded $1.05 and the pound survived just fine. A weak pound gives people from other countries bigger spending power for property and goods(so helping British exporters) in Britain and encourages tourism.With the current Exchange rate the tourist resorts of Europe and America will suffer without the Brits who famously spend a small fortune each year on vacations abroad. Also Spain,Greece and Portugal have recently been downgraded by Standard & Poor's yet Moody's ruled out the prospect of a UK downgrade. The end of The British Pound?No way. A weak British Pound?Definitely,and for a while too.
..."âIf you think weâre going to build our policy around comments from speculators who want to make money, youâre very, very wrong indeed,â Brown told the BBC on Jan 23. Rogers later told Bloomberg Television the currency was âgoing to be under pressureâ because the U.K. âhasnât got much to sell to the world any moreâ and has âstupendous debts"... http://www.bloomberg.com/apps/news?pid=20601087&sid=aFSYZfp7yK6E&refer=home
Thanks for the input. Of course I have no idea whether GBP will or won't 'survive' this, apart from this thread having a catchy title one can't dismiss that GBP is weakening against so many currencies, which is very worrysome. If low, then how low? If GBP goes 0.5/1 vs EUR, then to me it's as good as calling it finished. As I said previously, my opinion is to do with the way GBP charts look, not FA. I don't understand it enough to make any sort of opinion.