Forex: GBPUSD on a free fall

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The Sterling came under broad selling pressure today and as a result it fell to a two month low of 1.5935 against the US Dollar, while the Euro rallied to a five month high of 0.8818 against the British Pound. The Sterling is facing the impacts of the fragile UK economy and its slow paced recovery. While the dovish moments from the BoE which came out the previous week, indicating that the central bank is not willing to hike the rates despite the surging inflationary pressures both for the consumers and the manufacturers still weighs on the Cable. Investors believe that the sharp decline of the GB Pound today against most of the majors is mainly sourced from its selling against the AU Dollar, as insurance companies are paying to rebuild the flooded region of Queensland. The Cable is currently trading at 1.5955, slightly above the two month low, the cross pair is trading now at 0.8805, in sight of the multi month high