Pound versus US dollar: Technical forecasts and predictions for GBP-USD

For the sake of reference we see the pound / US dollar exchange rate trading a quarter of a percent higher on a day-to-day basis at 1.5354.

(This is a spot reference - be advised that your bank will affix a discretionary spread. Also note that an independent currency provider will guarantee to beat your bank's offer, thus delivering you more currency. More here).

The use of technical charts is helpful as they are able to indicate trajectory and momentum, thus allowing us to get a sense of the health of a currency and its likely direction.

The short-dated GBP-USD charts are tipped to favour the British pound over the US dollar; within the 2-6 week timeframe we note the formation of 4 bearish to 6 bullish events in favour of sterling.

What is more, 3 of the bull events occurred in succession from the 31st of May; the most recent being the formation of a bullish MACD crossover at 1.5321 on the 3rd of June.

Recognia Inc say that short-term support is at 1.5156 while resistance is at 1.5321.

Medium term outlook

The medium-term picture (6 weeks to 9 months) for the pound versus US dollar exchange rate is however in favour of the US dollar.

We see the formation of 6 bearish to 2 bullish events which suggests that the longer-term picture for sterling remains challenging.

Thus we would say the short-term picture favours further gains by the pound, however any hopes of sustained gains to towards 1.6 appear challenging.