GBP/USD Forecast Poll
WHAT IS THE FORECAST POLL AND WHY TO USE IT?
The Forecast Poll is a sentiment tool that highlights near- and medium-term price expectations from leading market experts. It is a sentiment indicator which delivers actionable price levels, not merely “mood” or “positioning” indications. Traders can check if there is unanimity among the surveyed experts - if there is excessive speculator sentiment driving a market - or if there are divergences among them. When sentiment is not at extremes, traders get actionable price targets to trade upon. When there is deviation between actual market rate and value reflected in forecasted rate, there is usually an opportunity to enter the market.
You can also use the Forecast Poll for Contrarian thinking strategies. Gonçalo Moreira, Research expert at Fxstreet, explains: “People involuntarily follow the impulses of the crowd. Sentiment indicators, in turn, lead to “contrarian” thinking. The Forecast Poll helps traders detect sentiment extremes and thereby limit their eventual toxic herd behavior.” Read more on Contrarian Approaches with Sentiment indicators
HOW TO READ THE GRAPHS?
Besides the table with all participants’ individual forecast, a graphic representation aggregates and visualizes the data: the Bullish/Bearish/Sideways line shows the percentage of our contributors on each of these forecast biases.
This graph is available for each time horizon (1 week, 1 month, 1 quarter). We also indicate the average price forecast as well as the average bias.
2017 FORECAST FOR GBP/USD
In our GBP/USD Forecast Poll 2017, our dedicated contributors expect the bearish trend to fade on Brexit. By the end of the year 2017, the average forecast for the pair is 1,1972. Read more details about the poll
In the last months, from Feb 2016 to Feb 2017, the maximum level for the GBP/USD was 1.50006 (on 24/06/2016), and the minimum, 1.2065 (on 16/01/2017)
MOST INFLUENTIAL POLITICAL EVENTS IN 2017 FOR GBP/USD
Number one political event in 2017 for the GBP/USD pair is the Brexit negotiations and the invocation of the Article 50 of the Treaty on European Union. This article is a part of European Union law that sets out the process by which member states may withdraw from the European Union, whose use became extensively debated after the referendum held in the United Kingdom on 23 June 2016 in which a majority of those voting favoured the United Kingdom's withdrawal from the European Union.
The moves and decisions taken by the new president of the United States, Donald Trump, and his administration will also probably impact the cable.
BONDS THAT INFLUENCE THE MOST GBP/USD
Bonds whose moves can impact the GBP/USD pair: T-BOND 30y; T-NOTE 10y;GILT 30y;BUND 30y; JGB 30y - GBP/USD traders should closely watch when trading it: UK 2y Gilt, UK 5y Gilt, UK 10y Gilt, UK 30y Gilt.