 Hello, welcome to this week's CMC Markets Currency Snapshot. This week we're going to be looking at the British pound against the US dollar. We've just hit a pretty huge support level here and there's quite a few things going on with the UK. We're talking about Brexit, Bank of England shying away from a rate rise, whereas the US have just gone and done their first rate hike. So a lot of things going on here and the pound has been plummeting but we're at this big support level so we want to see what's happening here. So as we've just alluded to the US have just raised rates whereas the Bank of England in recent commentary basically signaled that even 2016 there may not be a rate hike in the UK and so what we've seen is that the yield differential between US bonds and UK bonds has really stretched out in the favor of the US with expectations interest rates are going to keep rising over there whereas we're a bit uncertain about when they can even start here in the UK and so that search for yield has sent investors to the US treasuries rather than UK gilts and so that in effect has been the main driver of why the British pound against the US dollar has been heading so much lower when in general the British pound has actually been fairly strong against the other major currencies including the euro. Now that argument and the performance of the pound against these other currencies somewhat goes against the idea that actually Brexit the Britons leaving the euro zone is the big reason for why we're seeing a bit of a drop off here but I think it probably would fair to say that that if anything is adding to a reason to sell the British pound. So just to emphasize the gravity of the support that we're dealing with here we can pull out to the weekly candlestick chart of the pound dollar and see we've run right into these April 2015 low which comes in at the 14570 area and so we're right at that at the moment and so we've moved partially through it so that means we have hit new five and a half year lows but we've not closed below there even for the day let alone the week so the support can still hold but that so no we're still looking at whether this support can hold or not. Now if we drop down to the daily chart you can see what's led into this. We were in a kind of sideways changing trading range with the top around 158 but we had this downward sloping wedge pattern which can sometimes mean a breakout to the upside but very much not this time since since December we've really fallen off a cliff and obviously that does pretty much correlate with when the US first raised rates and you can see that this rising trend line that could have indicated a breakout to the top side in the pound dollar on the RSI we've broken below that as well so trend is very much down but this could be the beginning stages of a recovery if the pound is able to hold on to this support but we do really need to wait for some sort of reversal pattern on the on the day on the on the on the daily chart something like a double bottom a head and shoulders or something along the lines of a sharp reversal candlestick pattern on on the weekly chart. So that's it for this week's currency snapshot video we were looking at cable the pound against the US dollar we're looking at this multi-year support and whether it can hold or not now the main the main point here is the Federal Reserve raising rates so the other changing factor can be what the Bank of England say so far they've been very dovish but maybe comments in the next few days and weeks might tell a different story and that could be how this support holds