Cable, as GBPUSD is popularly known, taking its name from the first truly successful cable across the Atlantic, which once completed in July 1866 allowed reliable transmission of currency prices between the London and New York City Exchanges, has been an important pillar in world currency markets. Even though british empire and GBP have paled in significance in the the league table of world economies, GBP still remains the 4th biggest reserve currency of the world as per IMF data.
Since hitting new multi decade lows in Feb 2020, Cable made strong recovery along with rest of the asset classes from the lows of 1.1414 to nearly 1.3085 today. Does it mean the worst is behind us or the rally is coming to an end.
Let us find out!
