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Analyst: Bleak UK Economic Outlook Makes it Difficult for Pound to Recover from Pullback
Golden Ten Data, December 27th, News: Freelance analyst Michael Houston stated in a report that due to the bleak outlook for the UK economy, the pound is struggling to recover from its recent pullback against the US dollar. The GBP/USD exchange rate reached a peak of 1.3435 in September and has since been falling. Houston said that the GBP/USD exchange rate has failed to rebound above the 200-day simple moving average of around 1.2825. We need to see the exchange rate rise above this long-term average level to achieve stability. Otherwise, if it falls below 1.2480, it may return to recent lows or even fall to around 1.2000. He also mentioned that the performance of GBP/EUR is relatively better, but this is because the problems in the euro zone are much more serious than those in the UK.