Gbp usd news forecast

Here's a summary of the latest GBP/USD news and forecast:

Current Rate: 1.3750 (as of March 15, 2023)

News:

  1. UK Inflation Rate: The UK's Consumer Price Index (CPI) rose to 10.1% in February, exceeding expectations and reaching a 30-year high. This could lead to further interest rate hikes by the Bank of England (BoE).
  2. BoE Interest Rates: The BoE is expected to raise interest rates again in March to combat inflation. This could strengthen the pound and put downward pressure on GBP/USD.
  3. Brexit: The UK and EU have agreed on a new trade deal, which could lead to increased trade and investment between the two regions. This could support the pound and GBP/USD.
  4. US Dollar: The US dollar has been strengthening due to expectations of interest rate hikes by the Federal Reserve. This could put downward pressure on GBP/USD.

Forecast:

  1. Short-term: GBP/USD is expected to trade within a range of 1.3600-1.4000 in the short term, with a bias towards the upside.
  2. Medium-term: The pound is expected to strengthen against the US dollar as the BoE raises interest rates to combat inflation. This could lead to a target range of 1.4200-1.4500.
  3. Long-term: The long-term trend for GBP/USD is bearish, with a target range of 1.3000-1.2500.

Technical Analysis:

  1. Resistance: 1.4000, 1.4200
  2. Support: 1.3600, 1.3400

Fundamental Analysis:

  1. Economic Indicators: The UK's GDP growth rate is expected to slow down in the coming months, while the US economy is expected to continue growing at a moderate pace.
  2. Interest Rates: The BoE is expected to raise interest rates to combat inflation, while the Federal Reserve is expected to raise interest rates to combat inflation and maintain economic growth.

Trading Recommendations:

  1. Buy: Above 1.4000 with a target of 1.4200
  2. Sell: Below 1.3600 with a target of 1.3400

Please note that this is a general forecast and should not be considered as investment advice. It's essential to do your own research and consult with a financial advisor before making any investment decisions.