The pound plunges over fears of a pronounced recession as energy bills soar across the UK. Following a brief consolidation in July, a bearish MA cross on the daily chart indicates a continuation to the downside. The RSI’s oversold condition attracted some buying near 1.1650. But buyers’ failure to hold onto their timid gains foreshadows more rooms on the way down. A drop below 1.1600 would open the door to March 2020’s lows near 1.1400. 1.1750 has turned into a resistance and is likely to cap the next bounce.
