British pound/dollar exchange rate with biggest daily increase since the 2008 financial crisis

British pound/dollar exchange rate with the biggest daily increase since the 2008 financial crisis, The British pound received a further boost after British Finance Minister Kwasi Kwarteng said he would press ahead with the publication of his fiscal plan to restore market confidence.

The plan was scheduled to be published on Nov. 23, but late Monday it was reported that the plan will now be presented later this month.

pound to dollar exchange rate history chart

The GBP/USD pair took the recent developments positively and moved towards the 1.1450 resistance level with gains, recovering from last week's all-time lows.

Crucially, the plan is accompanied by a full set of forecasts from the Office for Budget Responsibility (OBR). Simon French, the chief economist at Panmure Gordon, said, "The fall in gilt yields and the strength of the pound highlight the function of reform, namely the Office for Budget Responsibility forecast and the medium-term fiscal plan.

pound to dollar forecast

Mel Stride, chairman of the Treasury Select Committee, said the move will "calm markets" and "reduce upward pressure on interest rates." The developments come amid a general recovery in sterling as markets have regained confidence in British assets after a turbulent period.

The pound had fallen sharply after Kwarteng announced a series of tax cuts on Sept. 26 to boost economic growth in the United Kingdom.

Many of the cuts had been expected, but some, such as the abolition of the 45 pence income tax threshold, came as a surprise. Sterling and gold sold off as investors questioned the UK's financial credibility.

However, the recovery from record lows dominated the currency's performance last week, and the pound rebounded sharply on Monday after the chancellor said the government was backing away from the 45 pence decision.

So it is assumed that the government is taking steps to correct its poor debut, and so far it seems to be working.

pounds to dollars converter

The GBP/USD (Pound Sterling /Dollar) currency pair price continues to move in an upward trajectory that lacks strength and continuity, as the markets are still cautiously awaiting the plans of the British government and the Bank of England to restore investor confidence in the country's economic performance and thus in the Pound Sterling.

Judging from the development on the daily chart, the pound needs to break through the resistance levels of 1.1630 and 1.1760 to confirm the strength of the recent upswing. On the downside, support at 1.1150 was breached during the same period, which ended the current uptrend.