The British pound has finally stabilized after gradually trending lower since the beginning of the month.
Coincidently, the currency’s pair’s intraday low was exactly the same price as the low reached on February 20th, leading some technical traders to call the latest recovery a double bottom. Fundamentally, there was no UK data released last night and none are expected tomorrow, which means that there is no major news to drive the British pound lower. The US data on the hand could drive the dollar lower which coincides with the potential for a GBP/USD rally. However even though the currency pair could very well extend its gains over the next 24 hours, the British pound remains vulnerable to further losses especially if the housing market deteriorates further.