British Pound (GBP): The Latest Exchange Rates, News and Pound Sterling Forecasts
- Written by: Gary Howes
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The pound sterling (GBP) has benefited from a new-found impetus over the course of the latter half of the week past. However, analysts warn further gains will be harder to come by.
A look at the latest sterling exchange rates at the Easter holiday weekend show:
- Pound euro exchange rate:1.1972
- Pound dollar exchange rate: 1.2557
- Pound Australian dollar rate: 1.9432
- Pound Canadian dollar rate: 1.7692
- Pound New Zealand dollar rate: 2.1566
- Pound South African Rand rate: 22.8477
Note all quotes are reflective of the inter-bank market. Your bank or payment institution is free to levy a rate at their discretion. However, FCA-registered independent providers guarantee to undercut your bank's offer, thus delivering up to 5% more FX. Please learn more here
Outlook for the pound dollar exchange rate
Most forecasters are unanimous in their conviction that the level of 1.7 is attainable owing to the solid ascent by the GBP against the USD in recent sessions.
However Lloyds Bank warn that the ascent to 1.7 will be difficult:
"The year’s previous high in GBP/USD at 1.6823 was broken last night, but current yield spreads do not suggests there is a lot more upside from here, and long GBP positioning may make it difficult to advance further without more news, especially ahead of a long weekend.
"But GBP remains well supported and a move towards 1.70 may well be seen next week."
Kathy Lien at BK Asset Management meanwhile forecasts that when a break of the heavy resistance levels does emerge the run higher will be quick:
"Thanks to stronger than expected employment data, GBP/USD is poised for another test of its 4 year high versus of 1.6822.
The last time sterling attempted to break through this level, the rally fizzled 2 pips shy of the high and today, it stalled 4 pips below its former high.
"Not only does this suggests that there are a significant amount of stops near 1.6822 but there could also be option barriers. We think it is only a matter of time before GBP/USD breaks above 1.6822 and when it does, given the resistance, the breakout should be very strong."
The latest forecasts regarding pound euro exchange rate suggest further EUR weakness.
Swissquote Bank tell us:
"EUR/GBP legged down to 0.82332 post-data. Trend and momentum indicators remain comfortably bearish. We keep our eyes set at 0.82250 (April downtrend channel base), then 0.82042 (March 5th low) as long as 50-dma resistance holds (0.82820)."
Piet Lammens at KBC Markets meanwhile maintain the view that the top won’t be easy to break in a sustainable way:
"EUR/GBP drifted to the 0.8230 area early last week, but a real test of the 0.8200/0.8157 support area didn’t occur. The sterling momentum is constructive, but a break will probably be difficult as long as the euro remains well bid across the board. We keep a sell‐on‐upticks bias for EUR/GBP.
The economic calendar is quiet for today and markets will likely see thin trading conditions as we head into a long weekend.
Unless traders capitalise on thin market conditions major moves in the British pound (GBP) exchange rate complex will be unlikely. Lammens says:
"Cable recently rebounded off the 1.6460 low and the 1.6823 cyclical top is reached. Ahead of the long weekend, this might be a too high hurdle, even as the dollar remains fragile across the board, unless big pockets use the thinness of markets to force a break."
