Pound Forecast

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.

GBP/EUR starts the new week hobbled by the market response to last week’s Bank of England (BoE) monetary policy decision but it could be likely to stabilise above the nearby 1.1650 level over the coming days, albeit with only limited upside potential.

Analysts at HSBC have said there are only one in three outcomes to Thursday's Bank of England policy meeting that might support Sterling upside.

GBP/AUD rate is trading at around 1.8200 at the time of writing after falling 1.15% in the week before. Studies of the charts suggest the pair will continue falling in line with the dominant downtrend.

Pound Sterling has retraced from the peaks of its October rally against the Dollar and further losses are possible over coming days, particularly if the Bank of England disappoints markets by shying away from raising interest rates.

Pound Sterling looks set to consolidate below the previous week's highs against the Euro as traders take money off the table ahead of this week's pivotal Bank of England meeting.

The Pound can still advance in value against the Dollar says a leading strategist we follow, supported in part by the stimulatory fiscal impulse provided by this week's budget announcement, although for now gains will likely be capped ahead of next week's central bank updates.

Technical analysis suggests bullish breakout favoured and thee pair could potentially reach 1.20.

Trading the dragon (GBP/JPY) higher is the advice of analysts at Morgan Stanley a unique conjunction of factors sees upside pressure increase.

Brexit will see the GBP fall, but worryingly for sterling bulls, even an In vote won’t save pound to dollar exchange rate from the 1.20s.