Pound Sterling Price News and Forecast: GBPUSD to strengthen against the USD in 2023

GBP/USD Forecast: Bears struggle to take control of pair's action

GBP/USD has regained its traction and climbed toward 1.2100 after having started the new week under modest bearish pressure. Despite the negative shift witnessed in risk sentiment, the US Dollar is having a difficult time attracting investors early Monday. The near-term technical outlook suggests that Pound Sterling sellers stay on the sidelines for the time being.

Coronavirus-related news from China forced investors to adopt a cautious stance at the beginning of the week and caused GBP/USD to edge lower. China's National Health Commission reported over 40K new coronavirus cases on Sunday, reviving concerns over China's zero-Covid policy weighing on global economic activity. Investors, however, seem to be more interested in other traditional safe-haven assets than the US Dollar, such as US government bonds and the Japanese Yen, early Monday amid heightened expectations about the Fed taking its foot off the tightening pedal. Read more...

GBP to strengthen against the USD in 2023 – HSBC

Recently, the British Pound has rallied largely alongside risk appetite. As the external backdrop is set to improve, economists at HSBC expect the GBP to strengthen against the USD in 2023.

“The prospect of a fiscal deficit of around 5% of GDP next year is likely to keep structural concerns about the GBP to the fore, but at least the situation is not set to get worse. This may be enough to support a currency that has weakened so much already, especially as there are early signs that the trade balance has begun to improve.” Read more...

GBP/USD: Large current account deficit to weigh on Sterling – ING

GBP/USD fluctuates below 1.2100. Economists at ING expect the Pound Sterling to remain under pressure amid prospects of recession.

“Three-month GBP/USD traded volatility prices are now under 12% having been near 19% in late September. Clearly, Sterling trading conditions have settled down even as recession expectations solidify.”

“Our view is that these GBP/USD gains will not last and we would not be surprised to see fresh selling interest emerging near the 200-Day Moving Average at 1.2177 or at best the 50% retracement of the 2021-22 drop – at 1.2300.” Read more...