Is the British pound sterling rally now over?

The British pound is under pressure - whether we are witnessing a pull-back after a decent summer rally or whether this is a fundamental shift lower still remains to be seen.

At Pound Sterling Live we continue to publish the latest views from those who make it their business to forecast the currency markets on our live feed.

The feel we are getting is that we are in a period of consolidation and this could last into the new year particularly with attention now firmly focused on the Eurozone recovery and the woes in the US.

(Don't delay: 1) Get a bank beating-rate exchange rate now or 2) Lock in these good rates for a time in the future when you are ready to get involved in a money transfer / transaction. Find out more)

"Yesterday we saw the slide of sterling continue following its drop on Wednesday after the ECB press conference. The ECB announced that interest rates would remain low or lower for the foreseeable in addition to announcing they would be lending money freely to European banks to help sure them up as economic recovery continued. This gave investors confidence in the single currency, so despite lowering of interest rates normally meaning a weaker currency, confidence shifted from sterling to the single currency," says Simon Eastman at Currency Index.

Time to capture the recent strength of the pound sterling

The British pound is still at strong levels against a host of currencies, but the concern now is that those holding out for better rates may actually be missing the good rates in front of them.

Eastman says currency buyers should be prepared for further pound sterling falls saying:

"We open this morning to a similar (downward) trend, the pound already dropping across the board so currency buyers should expect further losses today especially with a void of any UK data.

"There is EU inflation figures this morning and then a raft of US data this afternoon which includes the key non-farm payrolls and average earnings data. This can massively move the market if the figures, which they usually are, wildly different to forecast, so expect volatility this afternoon.

"So if you have a transfer to make over the coming few days or weeks this could be the opportune moment to buy. The trend seems to be to the downside and with such gains made in such a short space of time for the pound, we have been predicting this correction for some time, in another week we could be a cent or two lower against most of the majors."

Don't delay: 1) Get a bank beating-rate exchange rate now or 2) Lock in these good rates for a time in the future when you are ready to get involved in a money transfer / transaction. >> Find out more.