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.
The Pound to Dollar exchange rate stabilised around one-month lows on Wednesday but it faces technical and fundamental headwinds that could complicate any attempt at recovery in the days and weeks ahead.
Pound Sterling has declined for three weeks in succession but ultimately clings onto a broadly constructive setup.