Looking ahead

Pointing to the early September peak around $1.85, Dolan calls the sterling “pretty toppy.”

“I don’t see it much beyond the $1.85/1.87 level,” he says.

Mazanec advises traders to sell rallies. However, he did highlight a caveat.

“In forex, you can’t just look at the UK data,” he says. “You have to look at what’s going on in the U.S., too. If the FOMC stops hiking as well, you have to take that into [consideration], knowing it could slow the momentum the dollar has.”