Following Brexit, the Bank of England added a new term-funding program for banks, providing lenders ultra-cheap, four-year loans to help finance lending for households and businesses as an additional step to stimulate the economy.
Examining the pound’s charts does not turn up much good news on a technical basis.
Turning to the three month continuation chart, the patterns are all bearish for the Pound. Ever since the result of the EU referendum was announced, the trading pattern has shown a series of lower highs and lower lows. Not only is the Pound trading well below the 20 day simple moving average,” adds Options Express.
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CurrencyShares British Pound Sterling Trust (NYSEArca: FXB)