GBP/USD Forecast

The GBP/USD pair has caught my attention due to the fact that it has been so negative.

The Pound Sterling is consolidating around $1.3380 at the start of Tuesday's trading session, down from yesterday's peak of 1.3422, hovering near its highest levels since March 2022, as traders assess economic and monetary expectations

Before the end of last week's trading, and as the southeastern United States braced for Hurricane Helene, volatility in the foreign exchange market eased slightly as the market awaited the next major events that could move the market.

The British pound has rallied against the US dollar during the trading session on Thursday as it looks like we are trying to recover some of the losses from the Wednesday session.

The Pound Sterling is relinquishing some of its recent gains against both the Euro and the US Dollar.

The Pound Sterling has maintained its highest levels in several months against both the Euro and the US Dollar in the middle of this week's trading, aided in part by new comments from Bank of England Governor, Andrew Bailey.

The pound could continue to advance against the dollar in the coming weeks, but the next few days could see some consolidation around current levels.

The British pound initially pulled back a bit against the US dollar during the early hours on Monday, but you've seen traders come in and start buying the pound right at the 1.3250 region.

The British Pound came under pressure on Friday morning after UK retail sales exceeded expectations. However, a disappointing consumer sentiment survey suggests that the government's pessimistic tone regarding the economy and national finances is having a chilling effect.

The first thing I see is that we broke well above the 1.33 level during the trading session, and therefore I think it’s only a matter of time before we go much higher.

Recent trades have seen the British Pound rise to near $1.33, its strongest level since February 2022, benefiting from the general weakness of the US dollar.

As expected, the GBP/USD has maintained its recent gains pending the reaction to the US and UK monetary policy decisions this week.

The British pound has pulled back just a bit in the early hours on Tuesday, as we are looking at the 1.32 level as a bit of a ceiling, but perhaps more importantly, we are looking at a bullish flag offering a bit of resistance.

The GBP/USD exchange rate could test its 2024 high of 1.3250 if the Federal Reserve cuts US interest rates by 50 basis points this week.

The GBP/USD pair does in fact look very bullish.