Pound Forecast

A surge in momentum behind GBPUSD should take it higher and it is too early to expect a material pullback on a technical basis, according to a new analysis.

Strategists at HSBC went against the consensus in late 2023 and forecast a rise in the value of the currency. So, where does the team that got it right see the Pound moving over the coming weeks and months?

The British Pound reached a fresh 2021 high and another key figure at 1.31 on Thursday as the strong rally ignited by the release of softer-than-expected inflation data the previous day extended.

The march higher in the Pound to Dollar exchange rate reaches a key milestone as the 1.30 level comes into view, but overbought conditions are flashing.

Goldman Sachs raises its Pound to Euro exchange rate forecast saying the UK currency's recent strength "has staying power".

GBPNZD in a technical uptrend, 2023 highs can be retested and broken, but UK jobs report on Tuesday and RBNZ on Wednesday are risks.

The Pound to Euro exchange rate entered the new week near mid-June highs just above 1.17 but might most likely consolidate between there and somewhere around the 1.16 level in the days ahead unless Sterling is able to find reasons for excitement in the UK's latest employment and GDP figures. 

GBPAUD uptrend remains intact, further gains towards 2.0 possible if key level breaks.

GBPEUR exchange rate looks to test the 1.17 level over the coming hours and should remain supported over the coming month - data allowing - with further tests of the 2023 high probable if the May-July trend of appreciation remains intact.

GBPUSD remains subject to a bullish technical outlook according to a new analysis from City Index, the retail trading institution, in a call that offers some context to the recent pullback and consolidation.

The New Zealand Dollar begins the new week with a notable gain against most G10 currencies, extending its upward momentum from Friday, supported by a firm Asian equity market session and positive investor sentiment.

This week, the Australian Dollar's main focus will be Tuesday's interest rate decision at the Reserve Bank of Australia (RBA), which could result in another test of three-year lows against the Pound, or another short-term comeback.

Commerzbank, a leading financial institution, has warned that Pound Sterling is poised for a prolonged and significant decline against both the Euro and the Dollar.

JP Morgan is Bullish USD heading into the second half of the year and identifies Pound Sterling as a candidate to absorb much of this strength.

The British Pound should remain supported says Goldman Sachs in an analysis of the currency's outlook that follows last week's Bank of England's decision to raise interest rates by 50 basis points.

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".