Pound to Dollar Forecast

The downtrend in the Pound to Dollar exchange rate (GBPUSD) is not complete, according to a new technical analysis conducted by Société Générale.

According to a new economic research update from Wells Fargo, the Bank of England will cut interest rates ahead of the U.S. Federal Reserve in a move that should propel the Pound to Dollar exchange rate firmly below 1.20.

The Pound could remain supported against the Dollar over the coming days as technical indicators suggest the selloff of recent weeks is becoming exhausted, but the Federal Reserve, Bank of England and U.S. labour market statistics form the major hurdles to any significant recovery.

GBPUSD technical outlook is improved, but key test comes on Tuesday with PMI release.

GBPUSD has flipped short-term bearish, 2023 lows a target for the near-term.

The Pound to Dollar exchange rate can extend higher in the short-term according to a new analysis released following the release of UK GDP data that showed a rebound in activity during August.

GBPUSD short-term outlook remains positive, but strength to be limited given broader USD dynamics.

"We maintain a bearish view on the GBP/USD outlook even if the selling looks quite extended on all time frames. If there is a bounce to be seen, this is likely to be short-lived. We reckon the cable could be heading to 1.20 and possibly 1.18 in the weeks ahead."

Recovery from oversold conditions can extend, 1.2350 a potential short-term target.

The currency research and strategy team at Goldman Sachs have slashed their forecasts for the Pound as they announced they have "officially shifted back to Sterling bears".

The British Pound has now been subjected to 11 weeks of relentless pressure against the Dollar and there is little to suggest the selloff is about to end with most analysts saying 1.20 will be targetted over the coming weeks, although near-term some stabilisation can be expected.

Despite a month of selling, the British Pound is unlikely to experience significant weakness going forward according to new research from one of Europe's most prominent investment and commercial banking providers.

"GBP/USD fell with the euro and has slipped below its 200-day average, which looks ominous" - Société Générale.

The Pound to Dollar exchange rate is said to be at risk of further losses in the short-term and even a positive UK labour market report on Tuesday would unlikely be enough to resist the broader Dollar trend.

The British Pound and Euro have reached the "end of the road" according to a new analysis from HSBC as analysts hail the return of the "king dollar".

Barclays says in a new forecast revision it turns "less hopeful" on the British Pound's prospects, particularly against the Euro, Dollar and Swiss Franc.

"The next area of possible support would be at around 1.242; if that doesn’t hold we could then see a reversion to the major low posted near the end of May, i.e. at 1.232 or so" - The Technical Trader.

Pound Sterling appears vulnerable to losses against the Dollar over the coming weeks of September according to a new analysis released at the start of the new month.

The Pound to Dollar exchange rate was trading buoyantly above its recent lows on Tuesday after entering the new week on the front foot and could have scope to edge higher in the days ahead in the absence of any upset from central bank speeches in the U.S. or foreign exchange policy developments in China.

The Pound to Dollar exchange rate has receded sharply from the highs of early July but the risk now is that any attempted recovery is held back from Wednesday by a further ebbing of the inflation tide in the UK, potentially leaving Sterling unable to sustain any advance beyond the 1.28 level for the week.