Pound Forecast

GBPNZD sees 2023 high close by, technical studies remain bullish, UK inflation and Bank of England pose two-way risk.

GBPAUD has stabilised and gone higher but significant risks seen this week.

GBP/USD testing cluster of resistances at 1.2867 & 1.2877 on chart, Bank of England is key risk this week.

The Pound to Euro exchange rate has been carried to one-year highs in recent trade but inflation data and a difficult interest decision for the Bank of England (BoE) could lead to volatility in fits and starts with risk of a top forming around a nearby resistance level on the charts in the days ahead. 

Bank of America has raised its Pound forecasts saying the UK currency will remain supported despite the UK economy's "grim fundamental outlook".

The British Pound's stellar 2023 will ultimately unravel at some point in the coming weeks as the UK economy begins to underperform rivals say BNP Paribas in a new currency forecast note.

GBPNZD has unwound overbought conditions, but momentum remains positive on most timeframes. Watch NZ current account and GDP data this week, UK jobs and GDP data also pose key risks.

GBPAUD momentum continues to fade, meaning risks are to the downside short-term.

GBP/EUR close to one-year high after European data deteriorates, little scope for data to lift Bank Rate expectations or GBP further.

GBPUSD could be at risk of retreating back to 1.20 over the coming weeks according to a new technical analysis from Bank of America, however, nearer-term studies suggest further consolidation nearer 1.24.

The Pound to Euro exchange rate (GBPEUR) remains in an uptrend despite the setback seen at the start of the week.

A number of foreign exchange analysts we follow have over recent hours revealed research that shows the British Pound is set for a period of weakness as the UK economy enters a slowdown in the second half of the year, led by the housing market.

GBPNZD was overbought, consolidation likely, multi-week GBP upside still preferred.

GBPAUD remains in a multi-week uptrend, however, near-term turbulence inspired by Australia's central bank can offer opportunities in either direction.

Currency analysts at Credit Suisse predicted Pound Sterling's outperformance in recent months long before the majority of their peers in investment banking circles.

Pound Sterling is still screening overvalued and remains vulnerable to further losses according to strategists at one of Wall Street's largest banks.

EUR struggles on news Germany in recession, UK long-term yields fall following inflation data, but yield curve inversion can support GBP says ING.

Nomura adds a short position on GBP/USD to its strategy portfolio in anticipation of a consensus-beating fall in UK inflation expected to be announced next week.

Jefferies is looking for a stronger Dollar into year-end as a global slowdown and as U.S. funding issues drive demand for the U.S. unit.

ABN AMRO has upgraded its forecast for the British Pound against the Euro and Dollar expecting the Bank of England to be less "dovish" over the coming months than the ECB and Fed.