British pound (GBP) Exchange Rate Predictions: Sterling vs Euro (EUR) and US dollar (USD)

By Gary Howes

Here are the latest currency predictions from UBS and Swissquote Bank on the three main key exchange rate pairings we follow; the GBP-USD, EUR-GBP and EUR-USD.

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Pound dollar exchange rate predictions (GBP-USD)

Swissquote Research give us an opinion on how to play the pound dollar exchange rate today:

"GBP/USD is digesting its recent rise. However, the short-term momentum remains positive as long as the hourly support at 1.6598 (28/03/2014 low) holds. Hourly resistances can be found at 1.6684 and 1.6718. Another hourly support stands at 1.6555 (27/03/2014 low).
 
"In the longer term, prices continue to move in a rising channel. As a result, a bullish bias remains favoured as long as the support at 1.6460 holds. Another key support stands at 1.6220 (17/12/2013 low)."

UBS say they are still waiting for a key resistance level to be breached before they turn bullish on Cable:

"Important support at 1.6470 was tested earlier last week and prompted a bounce which has a strong resistance at 1.6684. A break above this will be positive, opening 1.6823."

Euro pound exchange rate predictions (EUR-GBP)

UBS say they are neutral on the euro pound exchange rate:

"The recent sharp sell-off brings our focus on the support at 0.8250, which was tested on Friday. A close below this will be negative as it would see the MACD cross below its zero line. Resistance is at 0.8323/42."

Analyst Luc Luyet at Swissquote predicts further strength in the euro thanks to an improved technical picture:

"EUR/GBP has improved, breaking the resistance at 0.8298. However, a break of the key resistance at 0.8322 is needed to suggest something more than a temporary bounce. Supports stand at 0.8246 and 0.8191 (28/02/2014 low).

"In the longer term, the failure to make any follow-through after the break of the resistance at 0.8350 (06/02/2014 high) calls for caution as prices remain below a declining 200 day moving average. A key support area stands at between 0.8168 and 0.8158.

Euro dollar exchange rate predictions (EUR-USD)

According to UBS, the outlook for the euro dollar rate is bearish in the near-term:

"With the MACD below its zero line, there’s scope for more downside in the near-term, our support focus is at 1.3664, and a break below this would expose 1.3562. Resistance is at 1.3876 ahead of 1.3967."

Luyet says:

"EUR/USD continues to bounce after the test of the support at 1.3708. However, the declining trendline still favours a bearish bias. An hourly resistance can be found at 1.3847 (25/03/2014 high). Another resistance lies at 1.3876.
 
"In the medium-term, the break of the support at 1.3834 (11/03/2014 low, see also the rising channel) coupled with general overbought conditions favour a move lower towards the support at 1.3643. The recent high at 1.3967 is
likely to act as a strong resistance."