British Pound Forecast: GBP/USD Pulls Back Ahead of November High
GBP/USD seems to be stuck in a narrow range as it pulls back ahead of the November high (1.3048).
Share this:
British Pound Outlook: GBP/USD
GBP/USD seems to be stuck in a narrow range as it pulls back ahead of the November high (1.3048), and exchange rate may consolidate over the remainder of the week as it no longer carves a series of higher highs and lows.
British Pound Forecast: GBP/USD Pulls Back Ahead of November High
Keep in mind, GBP/USD continues to hold above channel resistance after registering a fresh yearly high (1.2989) earlier this week, and the exchange rate may reestablish the rally from the start of the month should it defend the advance from the weekly low (1.2862).
Join David Song for the Weekly Fundamental Market Outlook webinar.
David provides a market overview and takes questions in real-time. Register Here
In turn, the range bound price action in GBP/USD may turn out to be temporary as the 50-Day SMA (1.2526) starts to establish a positive slope, but the Relative Strength Index (RSI) may show the bullish momentum abating as it struggles to hold in overbought territory.
With that said, a clear move below 70 in the RSI is likely to be accompanied by a larger pullback in GBP/USD like the price action from last year, but the exchange rate may stage further attempts to test the November high (1.3048) as it still holds above channel resistance.
GBP/USD Price Chart –Daily
Chart Prepared by David Song, Senior Strategist; GBP/USD on TradingView
- GBP/USD may consolidate over the remainder of the week as it no longer carves a series of higher highs and lows, but lack of momentum to hold above the 1.2900 (23.6% Fibonacci retracement) to 1.2910 (50% Fibonacci extension) area may push the exchange rate back towards 1.2820 (38.2% Fibonacci extension).
- A break/close below the 1.2710 (23.6% Fibonacci extension) to 1.2760 (61.8% Fibonacci retracement) zone may lead to a test of channel support, but GBP/USD may extend the advance from the start of the month should it continue to hold above the 1.2900 (23.6% Fibonacci retracement) to 1.2910 (50% Fibonacci extension) area.
- Need a break/close above 1.3010 (61.8% Fibonacci extension) to bring the November high (1.3048) on the radar, with the next area of interest coming in around 1.3140 (78.6% Fibonacci extension) to 1.3210 (50% Fibonacci extension).
Additional Market Outlooks
US Dollar Forecast: USD/JPY Rebound Keeps RSI Above Oversold Zone
Euro Forecast: EUR/USD on Cusp of Testing November High
Canadian Dollar Forecast: USD/CAD Faces BoC Rate Cut as Trump Tariffs Loom
Gold Price Outlook Hinges on Response to Positive Slope in 50-Day SMA
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Oil Quietly Hands the Fed a Reason to Stay Hawkish
Oil prices and the U.S. dollar are both on the front foot as elevated energy costs feed Fed warnings that inflation may prove sticky.
S&P 500 forecast: Stocks extend drop as correction risks grow
US and global equity markets have extended Wednesday’s sell-off, with Wall Street opening lower after a weak handover from Asia and Europe. The deterioration in risk appetite has been spreading across global markets. The dollar was firmer, Treasury yields were holding onto yesterday’s gains, while gold, silver and bitcoin were all under pressure alongside equities and major currencies.
Gold forecast: XAU/USD could take a larger dive after the big rise in yields
Gold prices have been falling in the last few days after last week’s post-FOMC pop faded amid rising interest rate expectations, higher oil prices and a strengthening US dollar. As before, I wasn’t convinced gold would thrive in the current macro backdrop.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.