GBP/USD Price Forecast 2024: Will politics and policy spoil the Pound Sterling party?
Setting out to analyze the GBP/USD price outlook for 2024, there are plenty of unknowns and looming uncertainties that make it difficult to convincingly predict the course of the Pound Sterling against the US Dollar (USD) in the year ahead. On both sides of the Atlantic, increased odds of a recession, a dovish pivot in the monetary policies and general elections are foreseen as the key factors driving the GBP/USD price action next year, barring any unprecedented geopolitical risks.
GBP/USD witnessed a rollercoaster ride in 2023 but the Pound Sterling managed to preserve the recovery gains seen in the first half of the year to a 15-month high of 1.3142. Meanwhile, the US Dollar failed to sustain the turnaround, helping GBP/USD gain over 5.0% on the year. However, it remains to be seen whether the British Pound will maintain its upswing against the Greenback, as we head into 2024. Read more...
GBP/USD attempts to recoup some losses [Video]
GBPUSD climbed to a new four-month high in the previous week, but it reversed lower again, falling beneath the 61.8% Fibonacci retracement level of the down leg from 1.3140 to 1.2035 at 1.2720.
The next major support level for traders to have in mind is the 20-day simple moving average (SMA) at 1.2615, with the technical oscillators confirming another bearish wave. The MACD oscillator is falling beneath its trigger line in the positive territory, while the RSI is flattening above the 50 level. Read more...
GBP/USD Forecast: Pound Sterling could struggle to extend rebound ahead of UK inflation data
After closing the second consecutive trading day in negative territory on Monday, GBP/USD found a foothold early Tuesday and stabilized above 1.2650. Ahead of the UK November inflation data on Wednesday, the pair could have a hard time gathering recovery momentum.
Despite the modest improvement seen in risk mood in the second half of the day on Monday, GBP/USD failed to gain traction as investors remained reluctant to increase Pound Sterling longs. Annual inflation in the UK, as measured by the change in the Consumer Price Index (CPI) is forecast to decline to 4.4% in November from 4.6% in October. Read more
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