Introduction to GBP/USD
The GBP/USD currency pair is one of the most popular and widely traded currency pairs in the world. It is also known as the “Cable”, due to the fact that the exchange rate was once transmitted via a transatlantic cable between the United Kingdom and the United States. The GBP/USD pair is a major currency pair, meaning that it is highly liquid and has a large daily trading volume.
Factors Affecting the GBP/USD Exchange Rate
The exchange rate of the GBP/USD pair is affected by a variety of factors, including economic and political events, as well as the relative strength of the two currencies. The most important factor is the relative strength of the British pound and the US dollar. Other factors include the Bank of England’s interest rate decisions, the US Federal Reserve’s monetary policy decisions, and the performance of the UK and US economies.
GBP/USD Forecast for the Next Month
The GBP/USD currency pair is currently trading at 1.3200, which is slightly lower than its recent highs of 1.3300. Analysts are expecting the pair to remain range-bound in the near-term, with a slight downward bias. This is due to the fact that the Bank of England is expected to keep interest rates on hold at 0.75%, while the US Federal Reserve is expected to cut interest rates by 25 basis points. In addition, the UK economy is expected to remain weak in the near-term, as Brexit uncertainty continues to weigh on the pound. On the other hand, the US economy is expected to remain strong, supported by strong consumer spending and a robust labor market. As a result, analysts are expecting the GBP/USD pair to remain range-bound in the near-term, with a slight downward bias.
Technical Analysis of GBP/USD
From a technical perspective, the GBP/USD pair is currently trading in a range between the support level of 1.3100 and the resistance level of 1.3300. The pair is currently trading near the support level, which suggests that the pair could break below the support level in the near-term. If this happens, the pair could fall to the next support level of 1.3000. On the other hand, if the pair breaks above the resistance level of 1.3300, it could rise to the next resistance level of 1.3400.
Conclusion
In conclusion, the GBP/USD currency pair is expected to remain range-bound in the near-term, with a slight downward bias. This is due to the fact that the Bank of England is expected to keep interest rates on hold, while the US Federal Reserve is expected to cut interest rates. From a technical perspective, the pair is currently trading near the support level of 1.3100, which suggests that the pair could break below the support level in the near-term.
Comments