GBPUSD Forecast and News


GBP/USD: Bulls set on 1.3220

GBP/USD bulls are set on a break to the 1.32 area on a bullish extension following a significant retracement and mean reversion of the prior bullish impulse. Bears might be prudent to wait for a bullish environment.

Latest GBP News


Technical Overview

From a technical point of view, the GBP/USD pair has limited bullish potential. The daily chart shows that it is developing above all of its moving averages, which are anyway confined to a tight range with modest bullish slopes. Technical indicators eased within positive levels, and hold around their midlines. The 4-hour chart shows that the pair settled below a bullish 20 SMA and that the Momentum indicator heads firmly lower within negative levels. The RSI indicator is flat within neutral levels, leaving the risk skewed to the downside.

Support levels: 1.3020 1.2970 1.2915

Resistance levels: 1.3060 1.3115 1.3150  


Fundamental Overview

UK macroeconomic figures released on Friday were generally encouraging, as the country reported September Retail Sales which came in at 1.5% MoM and 4.7% YoY, beating expectations. Also, the preliminary estimate of October Manufacturing PMI resulted at 53.3, better than expected, while the Services PMI missed expectations but remained within expansion levels, resulting in 52.3.

In the Brexit front, cautious optimism prevails, as the EU and the UK resumed trade talks. News indicating that French President Emmanuel Macron has said to the local fishing industry to brace for impact, somehow indicated that a deal is closer. However, investors are still cautious about the matter. Meanwhile, the resurgent number of coronavirus contagions in the UK pressures authorities, who refuse to impose a new full lockdown. The kingdom won’t publish relevant macroeconomic figures this Monday.



SPECIAL WEEKLY GBPUSD FORECAST

Interested in weekly GBPUSD forecasts? Our experts make weekly updates forecasting the next possible moves of the pound-dollar pair. Here you can find the most recent forecast by our market experts:

GBP/USD Weekly Forecast: Covid and Trump could cut off the Brexit bounce

Dual Brexit and US fiscal stimulus talks continued to dominate cable's trading, resulting in choppy trading, an eventual breakout to the upside, and a retreat afterward. 

Read full analysis

Big Picture

GBPUSD Bullish Themes

GBPUSD BEARISh Themes

Sponsor broker


FXS Signals

Latest GBP Analysis


Latest GBP Analysis

Editors' picks

EUR/USD: 61.8% Fib hurdle is again capping gains

The EUR/USD bulls are having a tough time breaching a key Fibonacci hurdle for the fourth straight trading day. That level marks the 61.8% Fibonacci retracement of the sell-off from 1.2011 to 1.1612. The Fibonacci hurdle has been capping upside since Wednesday.

EUR/USD News

GBP/USD: Bulls set on 1.3220

GBP/USD bulls are set on a break to the 1.32 area on a bullish extension following a significant retracement and mean reversion of the prior bullish impulse. Bears might be prudent to wait for a bullish environment.

GBP/USD News

USD/JPY picks up bid in tandem with US dollar, eyes on 105.00

USD/JPY's recovery from Wednesday's 0.85% decline is picking up pace in Asia, as the US dollar gains its feet amid risk-aversion. The reports that the BOJ will likely cut its growth and price forecasts for the current fiscal year at this week's monetary policy meeting weigh on the yen. 

USD/JPY News

Gold: $1883 is the level to beat for the bears

Gold is under pressure starting out a fresh week, battling $1900 amid resurgent haven demand for the US dollar. The greenback regains ground on Monday, as the second wave of the coronavirus accelerates at full steam in Europe.

Gold News

WTI hits three-week lows below $39

WTI hits three-week low, extending the previous week's 3% decline. The daily chart indicators scope for further losses. The daily chart relative strength index now shows an ascending triangle breakdown, a bearish pattern.

Oil News

Majors

Cryptocurrencies

Signatures


GBPUSD YEARLY FORECAST

How could GBPUSD move this year? Our experts make a GBPUSD update forecasting the possible moves of the pound-dollar pair during the whole year. Don't miss our 2020 GBPUSD forecast!

2020 GBPUSD FORECAS

In our GBPUSD Price Forecast 2020, our dedicated contributors expect a continuation of the bullish trend during the year. By the end of the year 2019, the average outlook for the pair was 1,3215. Read more details about the forecast.

From Jul 2019 to Jan 2020, the maximum level for the GBPUSD (Pound US Dollar) was 1.3740 (on 12/12/19), and the minimum, 1.2033 (on 08/11/20).

MOST INFLUENTIAL POLITICAL EVENTS IN 2020 FOR GBPUSD

Number one political event in 2020 for the pound to US dollar pair is the Brexit. The UK left the EU on January 31 but is expected to remain in the single market and customs union until December 31, 2020. The current arrangement allows the Brexit transitions period to be extended by mutual agreement for up to two years up. Apart from renewed Brexit uncertainty, investors will also take a closer look at UK economic fundamentals.


Influential Institutions & People for the GBPUSD

The Pound VS Dollar can be seriously affected by news or the decisions taken by two main central banks:

The Bank of England (BoE)

The Bank of England is the central bank of the United Kingdom. Established in 1694 and privately owned in the beginning, the Bank was nationalised in 1946 so now is completely owned by the UK government. BOE's main reason to be is to maintain monetary and financial stability in the country. Some of its other tasks are producing secure bank notes, operating asset purchase facility and keeping the inflation low and stable. The bank is overseen by the Court, named used to reffer the board of directors, and is accountable to Parliament and the public.

The Federal Reserve Bank (Fed)

On the other hand we found The Federal Reserve System (Fed) wich is the central banking system of the United States. Fed has two main targets: to keep unemployment rate to their lowest possible levels and inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.


Andrew Bailey

Andrew Bailey is Governor of the Bank of England since 16 March 2020. He was announced as the new Governor of the BoE on 20 December 2019. Bailey was born in Leicester in 1959 and graduated from Queens' College with a BA in History and a PhD from the Faculty of History, University of Cambridge in 1985. Before becoming the Governor of the BOE, Andrew worked at the Bank in a number of areas, most recently as Executive Director for Banking Services and Chief Cashier, as well as Head of the Bank's Special Resolution Unit (SRU). Previous roles include Governor's Private Secretary, and Head of the International Economic Analysis Division in Monetary Analysis.

Jerome Powell

Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in February 2018, for a four-year term ending in February 2022. His term as a member of the Board of Governors will expire January 31, 2028. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. He also worked as a lawyer and investment banker in New York City. From 1997 through 2005, Powell was a partner at The Carlyle Group.

BOE NEWS & ANALYSIS

ECB NEWS & ANALYSIS


About GBPUSD

The GBPUSD (or Pound Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs in the world. The pair is also called 'The Cable', referring to the first Transatlantic cable that was crossing the Atlantic Ocean in order to connect Great Britain with the United States of America. This term originated in the mid-19th century, which makes it one of the oldest currency pairs.

Pound Dollar represents two economies: British and American (from United States of America). The Cable is a widely observed and traded currency pair where the Pound is the base currency and the US Dollar is the counter currency. After the result of the Brexit referendum, this pair has been suffering some turbulence due to risk related with the abandonment process from the European Union.

Related pairs

EUR/USD

The EUR/USD (or Euro Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs in the world. This group also includes the following currency pairs: GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The popularity of Euro Dollar is due to the fact that it gathers two main economies: the European and American (from United States of America) ones. This is a widely traded currency pair where the Euro is the base currency and the US Dollar is the counter currency. Since the EUR/USD pair consists of more than half of all the trading volume worldwide in the Forex Market, it is almost impossible for a gap to appear, let alone a consequent breakaway gap in the opposite direction.

Normally, the EUR/USD is very quiet during the Asian session because economic data that affects the fundamentals of those currencies is released in either the European or U.S. session. Once traders in Europe get to their desks a flurry of activity hits the tape as they start filling customer orders and jockey for positions. At noon activity slows down as traders step out for lunch and then picks back up again as the U.S. comes online.

USD/JPY

The USD/JPY (or US Dollar Japanese Yen) currency pair belongs to the group of 'Majors', a way to mention the most important pairs in the world. This group also includes the following currency pairs: EUR/USD, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD. Japanese Yen has a low interest rate and is normally used in carry trades. This is the reason why is one of the most trades currencies worldwide. In the USD/JPY the US Dollar is the base currency and the Japanese Yen is the counter currency. The pair represents American (from United States of America) and Japanese economies.

Trading the USD/JPY currency pair is also known as trading the "ninja" or the "gopher", although this last name is more frequently used when referred to the GBP/JPY currency pair. The US Dollar Japanese Yen usually has a positive correlation with the following two pairs: USD/CHF and USD/CAD. The nature of this correlation is due to the fact that both currency pairs also use the US Dollar as the base currency, such as USD/JPY. The value of the pair tends to be affected when the two main central banks of each country, the Bank of Japan (BoJ) and the Federal Reserve Bank (Fed), face serious interest rate differential.