GBP/USD Forecast: Can pound find bottom on a 75 bps BoE hike?
GBP/USD has extended its slide after having suffered large losses on Wednesday and fell to its weakest level since 1985 at 1.1220 early Thursday. The pair seems to have gone into a consolidation phase ahead of the Bank of England's (BoE) interest rate decision but the British pound could find it difficult to stay resilient against the dollar unless the BoE delivers a hawkish surprise.
On Wednesday, the US Federal Reserve announced that it hiked its policy rate by 75 basis points to the range of 3-3.25% as expected. The updated Summary of Economic Projections showed that policymakers' median view of the policy rate by the end of 2023 rose to 4.6% from 3.8% in June's dot plot. By the end of 2024, the policy rate is projected to retreat to 3.9%. Read more...
GBP/USD: Is expected an upward reaction?
Looking at GBPUSD’s chart, we can see its downward trend and its 52W low at the rate of 1.12105 whereas currently it is reacted at the level of 1.1255. Last night, Fed announced an interest rate increase of another 0.75% which boosted the US Dollar and dropped the FX pair of GBPUSD to the new lows. As the 0.75% was expected and fully priced in, today we could expect an upward reaction towards its resistance level at around 1.1340. Read more...
GBP/USD could accelerate the slide towards 1.10 – SocGen
GBP/USD has traded at its weakest level since 1985 but pares intraday recovery gains. Still, analysts at Société Générale expect the pair to head lower towards 1.10.
“GBP/USD recently broke the lows of 2020 denoting persistence in downtrend. That low of 1.1410 is expected to be a short-term resistance.”
“The pair is expected to head lower towards next potential supports at projections of 1.1210/1.1160 and 1.1000 representing the descending trend line connecting lows of 2016 and 2020.” Read more...
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