I'll put my hand up. I think 1.70 is where the rate should be. GBP is oversold imo and has been for a while.

The money markets are not expecting the next interest rate rise in the UK until the summer of 2011. Even then, the BoE rate is expected to be only 0.75% at the end of 2011. More quantative easing is not out of the question but now looking less likely. Many believe the pound has been manipulated downwards to help exports in the current economic situation.

Of course, this is good news for people planning to move back to the UK or even from the UK to the Eurozone at the moment. Some are happy, some are not.

Interesting that Lehman Bros were spot on with their prediction in 2006 regarding the pound and the UK economy in general but failed to predict their own demise. There were one of America's oldest financial institutions (1844) and declared bankruptcy in 2008 mainly due to "cosmetic" accounting.

Hi
If I had a dollar for everytime someone has suggested a crash in GVR area ...
I could buy a house with dollar coins now.

But seriously
I have been waiting to upsize for nearly three years now....
still no crash...
cheers
Jerry

It won't happen (much) nominally.