Pound Forecasts

The Pound to Dollar exchange rate is on course for sub-1.30 readings according to new analysis, although another analyst at a major investment bank says any such move would prove fleeting.

GBP/CAD struggling against resistance at 1.7064 and faces further impediment to recovery at 1.7166.

GBP/USD closes in on major supports at 1.3171 & 1.3153 on Fed pivot toward faster taper, possible earlier rate rises.

The Pound to Euro exchange rate has unwound much of its Q4 rally and risks slipping back toward early November’s lows in the 1.1630 area if the market continues to eschew risk currencies in favour of safe-havens over coming days.

The Australian Dollar is the most oversold it has been since the August 2021 - Westpac.

GBP/USD may rebound if global markets recover but lingering Fed policy risks likely to limit upside.

GBP/EUR supported at 1.1749 with scope for recovery if global markets stabilise & safe-haven demand ebbs.

"We are not expecting the pound to strengthen against either the dollar or the euro. In fact, the risk is that it weakens against both" - Capital Economics.

GBP is predicted to come under pressure against the Euro and Dollar ahead over coming weeks and months, with a more sustained recovery only likely in the second half of 2022.

The Pound to Dollar rate has attempted to stabilise above November’s new 2021 low and could be likely to correct higher over the coming days if uncertainty about a White House decision on the leadership of the Federal Reserve prompts a momentary retrenchment of the greenback.

GBP/EUR supported near 1.1838 & 1.1783, meets resistance at 1.1950, scope for 1.20.

HSBC says 2022 will see the Pound deliver an uninspired performance against the Euro and head lower against the Dollar.

The Pound to New Zealand Dollar rate is trading at around 1.9020 at the time of writing after rising 0.42% in the week before, studies of the charts suggest the overall bias remains to the downside in the week ahead.

Studies of GBP/AUD charts indicate an ambiguous outlook with the possibility of a reversal despite the downtrend remaining dominant.

GBP/USD in short-term relief, but downside risks remain.

GBP/EUR has begun to pare early November losses and could attempt to regain a toehold above 1.17 over the coming days.

"We doubt that GBP will profit much from early rate hikes" - Swedbank.

GBP/CAD looks to stabilise above 2021’s low near 1.6700, aided by cleaner pricing of BoE & full expectations for Bank of Canada policy. 

In spite of recent recovery GBP/AUD remains in a downtrend and a break below 1.82 lows is required to confirm continuation.

A GBP/USD rebound could be likely this week, but much will depend on the market’s appetite for the greenback and response to U.S. inflation figures.