Pound Forecast

According to a recent report by Deutsche Bank, the market's expectations for the British Pound may have become overly optimistic in recent weeks.

The GBP/USD reached 1.25 handle last week, before dipping back below the high of its prior range around 1.2450. This level is now very important.

The British Pound could experience a setback as the Bank of England will surprise investors by keeping interest rates on hold in early May, according to a leading investment and commercial bank.

GBP/USD recovery disrupted by soft U.S. data, as resistance stymies path above 1.25 on chart.

GBP/EUR near year's highs but with obstacles ahead.

The Pound to Dollar exchange rate eased from close to one-year highs in the final session of a holiday-shortened week for some markets but the trend on the charts has shifted in favour of further gains and many analysts are tipping new highs for the months ahead. 

GBP/EUR rallies continue to be frustrated by selling pressure that ultimately tends to dump the pair back into a well-trodden range.

The British Pound is a 'buy on dips' as a brighter UK economic outlook combines with a broader Dollar retreat to keep 2023's uptrend in GBP/USD say analysts.

The British Pound's outlook remains upbeat in the near term although headwinds will likely ensure the prospect for substantial gains remains limited, according to one of Europe's largest commercial and investment banks.

GBP/EUR could fall below 1.10 says Morgan Stanley, such levels are associated with 'crisis'.

A move to 1.27 would offer Sterling sellers their greatest purchasing power since April 2022.

Goldman Sachs says it is turning more constructive on the Pound's prospects amidst a broadly improved domestic environment, but it is still too soon to get outright positive.

EUR/GBP a sell this week says Crédit Agricole model, Equals Money notes GBP/EUR to be in an uptrend.

GBP/USD recovery intact but facing resistance overhead.

GBP/EUR attempting recovery of key average at 1.1389  

Improved sentiment saw Pound Sterling recover from its lowest levels since September and end February with a gain against the Euro, and March could see further gains according to some analysts we follow.

The Pound to Dollar exchange rate has most recently succumbed to a broad rebound by the greenback that could be likely to constrain any attempted recoveries this week even if Sterling does itself manage to defy any further headwinds blowing in from across the Atlantic over the coming days. 

GBP appreciates sharply aided by strong PMI data as improved political climate also bodes well, say analysts.

The Dollar is expected to maintain pressure on the Pound and Euro for the first half of 2023.

Foreign exchange strategists retain a cautious stance on Pound Sterling and see the potential for further weakness against the Euro over the short- to medium-term.