As of August 29, 2023 futures traders accumulated an extremely large number of positions in the British Pound that are similar to what they accumulated in July 2014. Using this data as a leading indicator the end result of this accumulation is an expectation of a sharp decline in the British Pound, along with a corresponding sharp rise in the U.S. Dollar in 2023 and 2024. Using the 2014 U.S. Dollar structure, a move up to 150 over the next 12 months would be in line with related Fibonacci calculations. This will have a significant deflationary impact on major currencies and commodities in 2023 and 2024.
Stock chart courtesy of StockCharts.com.
