The British Pound is unwinding overbought conditions and could fall further in the short term; however, the bigger picture still favours the upside in the coming weeks.
Pound Sterling has recorded a new two-year high against the Dollar amidst a rejuvenated global equity market rally with one market professional saying any weakness will only invite more buying interest.
Pound Sterling powered to fresh two-year highs at the end of last week, buoyed by the Federal Reserve's commitment to a September rate cut. But, the rally is looking stretched.
"The time has come for policy to adjust," said Federal Reserve Chair Jerome Powell, in a clear sign U.S. interest rates are about to fall.