Key Exchange Rate Forecasts: The Pound vs the Euro vs US Dollar and vs the Aus Dollar

First, for reference, the following spot levels are noted at the time of the article's most recent update:

• The pound to euro exchange rate (GBP/EUR) is at 1.2807.
• The pound to US dollar exchange rate (GBP/USD) is at 1.6306.
• The euro to US dollar exchange rate (EUR/USD) is at 1.2730.
• The Australian to US dollar is (AUD/USD) is at 0.8795.

Be aware: All forex quotes here are taken from the wholesale spot markets; your bank will levy a spread at their discretion. However, an independent FX specialist will undercut your bank's offer, delivering up to 5% more currency in some instances. Learn more.

Pound to US dollar Forecast: Resistance Will Keep GBP/USD Contained

Remember when the sterling dollar exchange rate was on a tear higher with a full field of analysts forecasting more gains?

Well, those times have certainly passed with many now warning the best pound dollar exchange rates of 2014 are sure to be a thing of the past.

A forecast note from Swissquote Research tells us:

"GBP/USD has made a sharp bearish reversal near the resistance at 1.6497 (see also the 38.2% retracement). A phase of consolidation is likely. Hourly supports can be found at 1.6241 (intraday low) and 1.6162 (16/09/2014 low).

"A key resistance now lies at 1.6525 (19/09/2014 high). In the longer term, the collapse in prices after having reached 4-year highs has created a strong resistance at 1.7192, which is unlikely to be broken in the coming months. Monitor the recent rebound as it could signal the start of a medium-term consolidation phase.

"A support lies at 1.6052, while a strong support stands at 1.5855 (12/11/2013 low). Friday's weakness has forced us to close the remaining of our long position."

Euro to US dollar forecast: Sell the Euro on Strength

Commenting on the outlook for the euro dollar pair is Karen Jones at KBC Markets:

"Despite a loss of downside momentum, the market remains dominated near term by its downtrend, this is today located at 1.2914. We would continue to lighten short positions as the daily RSI has diverged quite significantly on the move to a new low and we would allow for a small corrective rebound.

"Current position: Shorts from 1.2952 covered 1.2862 Recommended trade: Attempt small shorts on rallies to 1.2910, stop 1.2930."

SEB Group meanwhile warn that the current uptick being seen on the EUR/USD could go further:

"Short-term conditions remain stretched and price action less aggressive to the downside which in combination has created a price/momentum in this timeframe prospective. Over 1.2877 would then focus to 1.2931. Key resistance is located in the 1.2995/1.3020 zone. Current intraday stretches are located at 1.2800 & 1.2895."

Euro to pound forecast: Negative Outlook

As with euro dollar, the outlook for the euro pound exchange rate (EUR/GBP) is negative below 0.7905, however analysts at ICN Financial say risk-limit above 0.8010 should be set in case of an unexpected rally.

Commenting, ICN say:

"The price is still below the previously broken support of the minor ascending channel, and the bearish bias remains valid in the upcoming period supported by the pressure from SMA 50 and 100. The next target would be testing 0.7780, and breaking it represents confirming the extension of bearishness towards 0.7690. A break above 0.7905 pushes the pair to the upside to visit 0.8085 mainly."

Australian dollar to US Dollar forecast: Avoid for Now

The Australian dollar has struggled in recent times with charts showing the AUD/USD has plummeted to levels not seen since February.

The sudden fall has seen the team at ICN Financial advise they are staying neutral on the Austrlian currency for now:

"AUDUSD is providing noticeable positive trading after ending yesterday's session below 0.8880, this contradiction between technical factors forces us to be neutral temporarily to monitor the pair at the mentioned level, whereas stability above it supports the possibility of trading positively targeting 0.9000, while trading again below it reactivate the downside move with its next target at 0.8690."