Sterling vs dollar: serious situation for the pound
As thoughts turn to the annual summer holiday, independent analyst Alistair Strang reviews latest movements in this important currency pair.
19th March 2026 07:45
by Alistair Strang from Trends and Targets
Buying my parsimonious VW’s monthly ration of 20 litres of diesel, the local garage was charging 170.9p per litre. Or in language readers will comprehend, nearly two Taylor Wimpey shares a litre or even 13 Tullow Oil shares a litre. This makes things become serious.
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Currently, one of the great puzzles is why the US dollar appears to be strengthening against other currencies. What’s odd is the pairing appeared ready to head upward until at the end of January this year we saw a sharp pivot in the dollar's fortunes. Abruptly, the idea of everyone going to Disney Florida changed!
Now, if the dollar continues to flex its illusory muscles, a visit to the summer traffic hell of Cornwall will probably make more economic sense than trying to escape the UK.
The current situation for Cable looks poised on the edge of darkness, with movement below 1.32188 looking very capable of triggering reversal to an initial 1.31224 with our secondary, if broken, down at 1.28625. If triggered, the tightest stop loss level looks like 1.32800.
In this instance, we suspect US dollar strength shall prove a mirage, one which the market shall doubtless vanish with a flick of the “gotcha switch” as movement above 1.3483 has the potential of triggering improvement to an initial 1.3633 with our secondary, if bettered, at 1.3896.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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