The Pound hit another bottom. Overview for 20.03.2020

GBPUSD continues falling on Friday: it updated the low again and is trying to correct. 

The British Pound remains in a tight corner against the USD. The current quote for the instrument is 1.1685.

In the morning, the pair hit another bottom at 1.1409.

Yesterday, the Bank of England has an unscheduled meeting where it made a decision to cut the benchmark rate from 0.25% to 0.1%. At the same time, for the first time in many years, the regulator increased its holdings of UK government and corporate bonds by £200 billion, up to £645 billion and that was a very decisive move for the Bank of England.  

GBPUSD is currently trading not far from the lows of 1985. This bottom is way too deep to recover from, especially that the positive momentum of the BoE’s activities was effective for a very short period of time. 

We remind you that the British economy is suffering additional pressure from the Brexit procedure. Taken together, these factors may be very unpredictable and hurtful for the country’s economy. It’s highly likely that the United Kingdom may lose any positive momentums in its economy for the next several years.