British Pound/US Dollar Monthly Forecast

British Pound/US Dollar Long Term Technical Forecast

As written here last month, the 5 wave advance from 1.3682 is complete at 2.1160. The GBPUSD has already entered the Fibonacci zone, which began at 1.7916. The next level, 1.7016, is defended by the 2005 low (as well as round number 1.70 support). Expect additional weakness longer term (into at least 1.70).

British Pound/US Dollar Fundamental Outlook/Interest Rate Forecast

Deterioration in UK economic conditions and a dovish central bank have forced continued declines in Bank of England rate expectations and likewise led to British Pound declines. Interest rate markets forecast that the British Pound - US Dollar interest rate differential will shrink by a substantial 128 basis points (1.28 percent) in the coming year of trading-nearly halving the GBP's interest rate advantage against the USD. If such market forecasts come to fruition, we could see the British Pound fall further against the US dollar.

Forex Sentiment and Positioning Outlook for the British Pound/US Dollar

British Pound Forex Futures Positioning Signals Short-term Correction

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