Summary There are mainly two troughs and one peak. Please find the dates of peak and troughs. What are the reasons for the peak and the trough between 2016 and 2017? In other words, what caused the sharp depreciation for British Pound during 2010 and depreciation

This GBP/USD charts lets you see this pair’s currency rate history for up to 10 years. The dates for the two troughs are 16th October 2016 and 13th January 2017 and the date for the peak was 14th December 2016. According to Forbes (2016), Brexit, a deal between the UK and the EU which had backing from business leaders because of the certainty it brought and the fact that it kept the UK in the free trade area was the main cause for the depreciation of the British Pound. The decision by the UK to leave the EU lead the pound falling to levels never experienced for a long time forcing long speculative positions from political and financial elites who had to exit at a painful level. However, according to Markets Committee (2017), this depreciation could have ben caused by initial price move and sharp increase of the pound which aligned closely to the breach of the 1.26 level in the GBP/USD potentially indicative of a role for mechanistic selling needs around this level. Liquidity withdrawal also may have acted as amplification mechanism to the depreciation as firms will naturally become more cautious in pricing risk during bouts of volatility and will widen prices before ceasing quoting altogether when certain thresholds are breached. On April 25th 2019, the exchange rates for GBP/USD were 1. 28991.This means 1 GBP =1.28991 USD. 10000USD = 10000/ 1.28991 =7752.47886 USD References Stefanoa,K.(2016).The Rise And Fall Of The Brtish Pound,forbes.Retrrieved from Markets Committee.(2017).The Sterling 'flash event' of 7th October 2016 .Retrieved from