GBP is technically very weak and is testing the lows of 2010 and it is expected to test the level of 0.42 and thereafter 0.38 as the bears and global sentiments remain devastating.
It is expected that Pound will be falling for short term. So, don't miss an opportunity and sell now!
GBP/USD forecast for the week of January 18, 2016 The GBP/USD pair initially tried to rally during the course of the week but then sliced through the 1.45 level and continue to go much lower. In fact, we closed at the very low of the weekly candle, and as a result that looks as if the market is trying to tell us that the British pound is going to continue to go much lower. Rallies at this point in time will be sold, and we fully anticipate seeing the British pound drop to the 1.40 handle below.
GBP/USD: Sterling Gains After Friday's Sell-Off Sterling found some support on Monday, as risk sentiment on the currency markets helped higher yielding currencies such as the aussie or the UK pound bounce from its multi-year lows seen recently.
Although the pound is trading at its daily highs, 0.44% at $1.4315, it remains very close to its lowest since 2009. During the overnight session, the pound hit an intraday low of $1.4248, its lowest since 2010, while if it breaks below $1.4230 it will hit its lowest in 7 years.
Neither the UK nor the US calendar offers any data today, hence the cable will be driven by the overall market sentiment. China and oil prices are once again set to grab the most attention this week.
GBPJPY a good opportunity to SELL . btw, GBP is not sp strong in the market as before
GBP is vulnerable to downside with alot of selling pressure coming in because of its weak economic conditions. the downtrend will follow for coming weeks as the markets are going to be weak and tumbling because of slowdown of chinese economy.
Sterling falls to lowest level since March 2009 The pound fell to almost six-year lows against the dollar on Tuesday after Bank of England Governor Mark Carney said policymakers want to see faster U.K. growth and stronger inflation before raising interest rates.
GBP/USD hit lows of 1.4207, the weakest since March 2009, off earlier highs of 1.4338.
The drop in the pound came after Carney said collapsing oil prices and an "unforgiving" global environment meant that any interest rate increase could be delayed.
"It is clear to me that since last summer, progress has been insufficient to warrant a tightening of monetary policy," Carney said.
“Now is not the time to raise interest rates."
Carney said that he did not have a "set timetable" for raising interest rates.
"It has always been the case that, because the economy is subject to unforeseen disturbances, the precise path for Bank rate rises cannot be pre-ordained."
Carney said a decision on when to raise rates would not be driven by the "calendar" but by "economic prospects."
The remarks came during a speech at the University of London.
Earlier Tuesday official data showed that the annual rate of inflation in the U.K. rose at the fastest rate in almost a year in December.
GBPUSD making new session highs Moves above the 2010 low at 1.4227
The GBPUSD is trading to new session highs and in the process has moved above the 1.4227 level - the low from 2010.
Looking at the hourly chart, shows the extent of the recent declines. Typically, it is hard to throw all that bearishness out the window - after all the move was for a reason. However, that does not mean the price cannot retrace. How much depends on the levels that can be breache.
GBP/USD rises after mixed U.K. data, gains capped The pound rose against the U.S. dollar on Friday, but gains were expected to remain limited by the release of mixed U.K. economic reports and as demand for the greenback remained broadly supported.
GBP/USD hit 1.4306 during European morning trade, the pair’s highest since January 19; the pair subsequently consolidated at 1.4284, gaining 0.46%.
Cable was likely to find support at 1.4078, Thursday’s low and a seven-year low and resistance at 1.4341, the high of January 19.
The U.K. Office for National Statistics said retail sales declined by 1.0% in December, confounding expectations for a 0.3% slip, after a revised 1.3% increase the previous month. Year-on-year, retail sales rose 2.6% last month, disappointing expectations for a 4.3% gain.
Core retail sales, which exclude auto sales and fuel, fell 0.9% in December, compared to expectations for a 0.3% downtick and after a revised 1.3% increase in November.
A separate report showed that U.K. public sector net borrowing rose by £6.87 billion in December, less than the expected increase of £10.35 billion. Public sector net borrowing climbed by £12.94 billion in November, whose figure was revised from a previously estimated gain of £13.56 billion.
Meanwhile, the difference in monetary policy stances between the European Central Bank and the Federal Reserve continued to lend support to the greenback.
The U.S. dollar strengthened broadly after ECB President Draghi said on Thursday that it would be necessary to “review and reconsider” the bank’s monetary policy at its next meeting in March, when new economic projections become available.
GBP/USD forecast for the week of January 25, 2016 GBP/USD pair fell significantly during the beginning the week, testing just above the 1.40 handle. However, we found enough support to turn things back around and form a massive hammer. The hammer of course is a very bullish sign so it is possible that we could get a bounce from here. On a break above the top of the hammer, we would anticipate that this market could very well go to the 1.45 level, and then perhaps even higher than that. Having said that though, this is a very bearish market, so we are more than likely going to see a bounce followed by extended selling pressure yet again. Because of this, we are very cognizant of the fact that a resistive candle above could be a warning sign to get out for longer-term bullish traders.
On the other hand, if we break down below the bottom of the hammer, that is a very negative sign. That could send this market looking for the 1.40 level, and then perhaps even lower than that given enough time. If we break down below the 1.40 level, that would be extraordinarily bearish for this pair. Quite frankly, we feel that this market will more than likely bounce, so having said that it is probably only a matter time before we get that move.
A resistant candle above is a selling opportunity in our opinion as it could build up momentum in order to continue dropping much lower. At this point in time, it is not until we break above the 1.50 level that we feel it is a longer-term “buy-and-hold” type of market. That is the type of scenario find yourselves and, but with the overextension of the selling pressure it would make sense get a bit of a bounce as we have to be running out of sellers for the short-term. Ultimately, the British pound has been oversold so with that it makes a lot of sense for this market to form a bit of a relief rally over the next couple of weeks.