Pound Forecast

GBP/AUD sits poised at a key area of resistance that, if broken, could usher in new highs, but failure to breach could ultimately result in a pullback over the course of the coming week.

The Pound to Dollar exchange rate reached multi-month highs last week after Federal Reserve (Fed) and Chinese health officials appeared to inspire in investors an almost Pavlovian appetite for chasing risky assets but it remains to be seen if the rally can survive this week's U.S. economic data offering.

The Pound to Euro exchange rate's multi-month recovery was frustrated last week as Sterling became caught in a dense pocket of technical resistance, which could continue to obstruct the path higher in the days ahead and what is set to be a quiet week for UK and European economic calendars.

GBP is near multi-decade lows and the risk of a major decline is limited, says NatWest Markets as it assesses the currency's prospects for 2023.

The British Pound ends November on a solid footing against the Dollar and Euro but there is a distinct uncertainty amongst analysts as to how the coming month of December will play out.

GBP/NZD starts the new week higher amidst a selloff Asian and Australian currencies linked to the weekend developments in China, but the prospect of a material advance in the pair remains limited.

GBP/AUD has been edging higher for a number of weeks and could extend the advance if global sentiment linked to China deteriorates further.

The Pound to Dollar exchange rate has reversed more than one half of this year's decline but will now run the risk of a corrective setback that could pull it toward 1.20 or perhaps even back below there over the coming days. 

The Pound to Canadian Dollar exchange rate outlook has improved further in recent trade and Sterling could now have scope to reach some of its strongest levels since the end of the first quarter after establishing a foothold above the 1.57 handle last week, according to technical analysis from Scotiabank.

HSBC sees USD uptrend ending, upgrades GBP/USD forecasts.

Sterling embarking onto a bumpy road through 2023, energy prices & inflation drive underperformances.

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GBP/USD technicals broadly positive as near-term USD retreat remains intact.

GBP/EUR looking better supported, 200-week moving average forms main technical roadblock.

The Pound has rallied to a new three-month best against the Dollar as the major unwind of the U.S. currency sparked by last week's U.S. inflation data release extends.

Strategists at French bank Crédit Agricole are buying the British Pound against the Euro in the near term, finding the Eurozone's single currency has reached a short-term overvaluation.

GBP/AUD at 1.78 and then 1.80 is possible if the cards fall in Sterling's favour.

GBP/NZD set to release pent-up energy in a busy week for the UK.

GBP/USD in strong comeback, suggests the multi-year low is now in.

GBP/EUR struggling to hold gains, suggesting downside potential for coming days.

USD could be in the final phase of its multi-month rally according to analysts at Capital Economics, although they warn it is still too soon to prepare for the Greenback to roll over and turn trend.