The Dollar has fallen to a seven-month low amidst a build-up in expectations for a September interest rate cut at the Federal Reserve.

The Pound to Dollar exchange rate has rallied back strongly from its early August losses but the charts and bilateral economic fundamentals are aligned in suggesting that further gains could still be likely up ahead.

The Pound to Dollar exchange rate rallied to new highs for the week on Friday, overcoming some key levels along the way and bringing a longer-term recovery trend back into focus on the charts.

The Pound to Dollar exchange rate has steadied following a steep sell-off in late July and early August but there are multiple reasons for thinking it could have scope to recover further lost ground in the days ahead, with a retest of the 200-week average up around 1.2845 a credible prospect.