Note: The GBP/USD forecast is updated during every weekend and take into account the various factors which are expected to affect the relative price action of British pound sterling and the U.S. dollar.
GBP/USD Outlook And Predictions
GBP/USD continued it's downward consolidation during the last week after touching the high of 1.6822. The pair went as low as 1.6612 before closing for the week at 1.6616, bearishly.
The overall outlook stays bullish for GBP/USD, however the closing of the last week indicates that the possibilities of some more consolidations cannot be ruled out. On the downside a support is expected in the range of 1.6580 to 1.6604. This support is derived from the previous resistance levels, which are now expected to turn into support, the 38.2% retracement of the move from 1.6252 to 1.6822 which is at 1.6604 and the 22-day EMA which is at 1.6582. Any failure of this support may extend the fall towards 1.6520 to 1.6540 support zone of the Kijun line and upper edge of the daily Ichimoku cloud, however.
On the upside, a break over the recent 1.6733 but more importantly another break over 1.6746 of the week of April 25, 2011
is now needed to turn the focus back for further gains. Such a move should make GBP/USD to target the retest of 1.6822 first and with a break over that the pair should target 1.7000 next and then possibly 1.7042 as indicated in an update titled "GBP/USD breaks above one more hurdle
This is not for the next week but overall, a break over 1.7042 key resistance is very critical as it will indicate a break of the very volatile sideways moves which have been in place since 2009. The global economic crisis had cause GBP/USD to fall from 2.1161 to 1.3504 and since then the highest level the pair could go was 1.7042. A break there should target 1.7332 next which is the 50% retracement of the above mentioned fall. Please check the above mentioned post to have a look on this overall price-action.
Past 10 years' price action
Please check the relative strengths of recent economic releases as an aid for this week's forecast for GBP/USD.
More Resources For Trading GBP/USD
Please join the News Letter or Register to get email alerts when Forex forecasts for British Pound-U.S. Dollar are updated. For short term Forex trades, please refer to the daily technical update for GBP/USD at GBP/USD analysis.
You may also share and check any real-time trade positions for GBP/USD in the forum and the current GBP USD market sentiments.
We also post GBP/USD chart alerts whenever there is any specific observation which may result into either a big or unexpected movement.
You may also check GBP/USD Correlation with other currency majors.
GBP/USD Interest Rates Comparison
(For Carry Trade)
Convert British Pounds to U.S. Dollars.
This update on GBP/USD outlook is written by the analysts of ForexAbode.com. Do contact us for any questions, suggestions or feedback.