Pound to Dollar (GBP to USD) Signals and Price Predictions

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GBP/USD is considered a major pair, but with certain nuances. The UK is considered the EU, but it has its own currency supported by one of the world’s strongest economies. Brexit, which is not fully complete at the moment, has been the key factor that impacted the price. Thanks to the tough, conservative policy of the Bank of England, the GBP/USD pair has a rather small volatility and high liquidity. GBP/USD is the third most popular pair, with its trading volume accounting for around 12% of the total trading volume.

1

Recommendation for GBP/USD on the 15M timeframe is Strong Sell.

2

Recommendation for GBP/USD on the 1H timeframe is Strong Sell.

3

Recommendation for GBP/USD on the 1D timeframe is Strong Sell.

Starting from 2000, the EU and UK economy was developing faster than the U.S. economy that hit the “dotcom crisis”, with GBP/USD moving upwards. The 2008 crisis hit the overheated economies of the eurozone harder, causing the GBP/USD price to plunge to the levels of 2000-2001. Energy problems of Europe 2022 have caused the price of the British pound sterling to come very close to parity. Is it worth buying the British pound at the low or will the downward trend continue?


In our article, you will be able to learn the latest price forecasts and signals on the GBP/USD currency exchange rate for 1 hour-1 week. GBP/USD forecasts and signals are based on the technical analysis indicators.

NOTE!

On this page, you will find the latest information about current prices, updated and new forecasts for short and long-term intervals:

  • Asset quotes are updated every minute.
  • Price chart is updated every minute.
  • Technical indicator data is updated according to the time frame. For example, on M5, the data is updated every 5 minutes.
  • Medium and long-term forecasts are updated every hour.

GBP/USD forecast for 1 day, 1 week, 1 month

GBP/USD forecast by TU is prepared automatically on the basis of technical analysis of moving averages and indicators for each timeframe (interval) separately. Select the timeframe you need to find out GBP/USD price prediction for today.

NOTE!

Signals may differ on different timeframes. If you want to hold the GBP/USD for longer than 1 week/1 month, it is best to use the signals on daily and weekly timeframes. Timeframes from 5 minutes to 1 hour are best suitable for short-term transactions.

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Indicator Based Technical Analysis of GBP/USD

To find a better entry point, also find out what TradingView technical analysis tool signals for the Pound to US Dollar currency exchange rate. "Sell" or "Strong Sell" means that most of the signals are bearish. "Buy" or "Strong Buy" means that most of the signals are bullish. For short-term signals, it is recommended to use settings from 15 minutes to 2 hours. For long-term signals, it is recommended to use settings from 4 hours to 1 week.

GBP/USD Chart Online

What Influences GBP/USD Long-term Price Forecast

The GBP/USD price depends on the conditions of the U.S. and UK economies. Despite the stability of the British economy, the U.S. are in a more favorable position. USD is used in the gold and currency reserves of many countries and the country is well provided with raw materials. In turn, the UK is closely connected to the EU economy, where certain countries are experiencing structural problems.


Key factors impacting the GBP/USD price:

  • The Policy of the Federal Reserve System. Macroeconomic statistics, sectoral statistics, data on the public debt and balance of payments – any signals about the Fed holding inflation back, about new jobs being created, the GDP growing strengthen USD against all currencies.
  • The Policy of the Bank of England. The Bank of England publishes the Monthly Monetary Policy Report, specifying, among other things, the plans on changing the discount rate, the key instrument for managing inflation. Increasing the rate strengthens the national currency.
  • Geopolitical conflicts. Investors prefer to invest money in ‘calm’ assets. For example, trade wars between the U.S. and China in 2018 caused the price to grow, while the problems of the eurozone in 2022 – to fall.

In the last several months, the GBP/USD price has been at its low. If the UK and EU manage to cope with the abnormally high prices for energies and keep the inflation within the planned corridor, the British pound has a chance to grow. However, there is a high probability that growth will not happen in the next six months.

Latest exchange rates online

Price prediction methodology

The following tools and instruments were used for making the prediction:


Basic instruments of technical analysis. The forecast relies on basic technical indicators. The analysis was performed mostly on medium and long-term time frames for more accurate results.

Chart analysis. Analysis comprises a review of key levels of support, resistance, trend lines, as well as patterns formed on different time frames.

Statistical tools help evaluate a probability of a fundamental factor that could impact the price, its nature and intensity of impact.

Methods of mathematical and statistical analysis; modeling, adaptive forecasting methods.

Expert opinions and consensus forecast.

NOTE!

This forecast is based on current information and data of previous periods. Emergence of strong fundamental factors capable of radically changing the overall market trend and subsequent price trend is possible. The forecasts are updated regularly based on the latest data.

This article is created for informational purposes only and does not constitute investment advice. Be aware of the high volatility of cryptocurrencies and consider these risks when making investment decisions.

FAQs

Is the GBP/USD pair suitable for novice traders?

Yes. The price of this pair has moderate volatility at high liquidity. This means that traders are protected against sudden short-term price movements in both directions. The GBP/USD pair has a strong positive correlation with the EUR/USD pair (97%), which is a leading asset. This fact can be used to search for signals to open a position.

What are the best strategies for trading GBP/USD?

Any strategy, except for scalping. The London Breakout is one of the most popular strategies. It is based on trading by using pending orders at the moment of opening of world exchanges.

What are the risks of trading GBP/USD?

They are the same as in trading other majors. In short intervals, there is a risk of trend reversal under the pressure of large equity. On long intervals, there are geopolitical risks, force majeure events, inconsistency of the forecast with the actual statistics, etc.

How do I determine the volatility of the GBP/USD pair?

The first option is by using the ATR indicator, which shows the average price movement for the interval specified in the settings. The second option is the volatility calculator.