Pound Forecast

The British Pound is tipped to struggle against the Euro over the course of October as a hangover from a rough September extends, but weakness will likely remain limited as the Eurozone and UK economies are unlikely to diverge.

The Pound to Canadian Dollar exchange rate (GBPCAD) is looking to extend a short-term rebound in a week that will be dominated by the release of Canada's monthly labour market statistics.

The Pound's recent selloff against the Australian Dollar has eased over recent days but the exchange rate remains vulnerable to further losses, particularly if Tuesday's Reserve Bank of Australia (RBA) decision is more 'hawkish' than expected.

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

Pound Sterling is set to remain vulnerable against the Euro over the coming days and a test of the solid support zone at 1.15 could well come into play in a week devoid of data and events on the calendar for either the Eurozone or UK.

Strategists at Morgan Stanley say they are 'long' on the Euro to Pound exchange rate (EUR/GBP) and are ultimately looking for the pair to break above its summer range as the Euro outperforms its British peer into year-end.

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".

GBPCAD has entered a downtrend that can be expected to advance over the coming weeks, but the next five days could see some consolidation as the daily chart is screaming of oversold conditions.

GBPNZD can consolidate following a period of losses that have left it deeply oversold.

GBPAUD looks set to consolidate after the recent selloff left the pair at oversold levels, particularly if renewed fears concerning Chinese property stocks persist.

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.

The British Pound has lost value against all its G10 peers over the past month with losses accelerating in the previous week, but our five-day forecast suggests some of those losses can be unwound.

The Pound to Canadian Dollar exchange rate (GBPCAD) looks set for further declines according to a new analysis from Canadian bank Scotiabank, although short-term indicators suggest the pair might be reaching oversold conditions.

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.

GBPCAD is about to break the 200-day moving average, opening the door to a determined downtrend.

The British Pound continues to undergo a corrective pullback against the New Zealand Dollar that can extend further over the coming days, although Thursday's Bank of England decision and some important data releases out of New Zealand will offer two-way volatility.

GBPAUD in a short-term downtrend, but look for support at 100-day MA.

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

GBPEUR continues to respect a well-understood range, but the downside boundary is coming back into focus.

The Pound has fallen 2.30% from its 2023 highs against the New Zealand Dollar thanks to a recent cooling in Bank of England interest rate hike expectations and improved sentiment towards China.