Week Ahead Pound-to-Dollar Exchange Rate

The Pound-to-Dollar rate could consolidate over the coming days after its strongest month since 2009 left Sterling overbought on the charts, and at a point when the transatlantic coronavirus tables could be turning. 

The Pound-to-Dollar exchange rate advanced further amid a continued sell-off in the greenback but that weakness has left some risk currencies over-extended against the U.S. unit while the fundamental backdrop is souring and could prompt a downward correction for Sterling in the coming days. 

The Pound was one of only two majors that ceded ground to a troubled Dollar last week and will remain burdened by domestic headwinds in the coming days, although the response of stock markets to the latest corporate earnings will likely dictate the broad trajectory of Sterling. 

The Pound recovered sharply off June lows against the Dollar last week and a number of analysts say it could have legs to extend its correction higher in the coming days, though appetite for Sterling will be tested by domestic developments multiple times even if global investor risk appetite remains robust. 

The Pound-to-Dollar exchange rate toppled into the weekend after an earlier recovery unravelled from Wednesday on, leaving Sterling clutching for support as the Brexit talks resume and safe-haven demand for the greenback picks up on souring risk appetite among investors.

The Pound underperformed last week while the greenback steadied, leading the Pound-to-Dollar rate to unravel again on the charts in a move that's tipped to extend over the coming days.

The Pound-to-Dollar rate shed almost one percent in what was a rollercoaster ride last week but is at risk of crumbling further in the coming days amid multiple technical and fundamental headwinds that could see volatility picking up. 

The outlook for the Pound against the U.S. Dollar has turned more constructive according to our studies, while the calendar suggests U.S. price data will be important for the Greenback this week and Sterling will be subject to the outcome of cross-party Brexit negotiations.

The Pound-Dollar exchange rate is trading below 1.30 and our technical studies suggest further near-term weakness can be expected.

The Pound-Dollar exchange rate has fallen below the psychologically important 1.30 marker as near-term momentum turns negative suggesting a bias for further losses over coming days.

The Pound is forecast to track sideways against the U.S. Dollar over the near-term suggest our technical studies, but much of this week's action will depend on UK wage data out on Tuesday and a Dollar that appears to be experiencing a short-term soft-patch.

Pound-to-Dollar exchange rate in the week ahead: biased to the downside according to technicals, but critical week of Brexit developments could inject substantial volatility into market.

The Pound-to-Dollar rate is set to begin trading around 1.3043 on Sunday after falling more than one percent in the previous week, and the eat the start of the new week, down 1.3% from the week before.

The Pound-to-Dollar rate is set to beging trading around 1.3214 Sunday after falling just more than half a percent in previous week, although technical studies of the charts suggest the exchange rate is likely to rise over the coming days.

The Pound-to-Dollar rate is to begin trading around 1.3285 Sunday after rising more than 2.0% in the previous week, although the exchange rate still has further to climb over the coming days, according to technical studies of charts.

From a technical perspective, the GBP/USD pair has executed a complete U-turn after previously being in an uptrend and has fallen below some key markers, such as the 50-week moving averag at 1.3129. The coming week is expected to see volatility rise sharply as parliament votes on the EU-UK Brexit deal for a second time.

The Technical outlook for GBP/USD is constructive and we would expect Sterling to maintain its 2019 bias for strengthening. But, we are wary of a surprise vote on Brexit, while a broadly stronger U.S. Dollar could provide headwinds.

The Pound is poised to make further gains against the U.S. Dollar from a technical basis with favourable chart setups being observed. However, an important week for Brexit politics and a slew of data out of the U.S. economy could trigger unexpected shifts in the GBP/USD exchange rate.

Pound Sterling is in a short-term downtrend against the U.S. Dollar which leads us to suggest more of the same is possible near-term but we are conscious that weekend news on a potential softening on France's Brexit stance could benefit the currency early on.

The Pound fell back against the U.S. Dollar last week however the technical outlook remains positive and with the Brexit impasse likely to play neutral for Sterling in the coming week there is a good chance the exchange rate turns higher once more.