British Pound Forecast: Losses Send Sterling Towards Support - Levels for EUR/GBP, GBP/JPY, GBP/USD
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British Pound Outlook:
After blue skies through the start of the year, it’s been nothing short of April showers for the British Pound.
That said, April tends to be a bullish month for the British Pound from a seasonal perspective, so losses may be stemmed as several GBP-crosses approach significant support.
Recent changes in retail trader positioning suggest a mostly mixed bias for the British Pound.
Sterling Slides Towards Support
At the onset of the quarter, it was noted that “even as some concerns arise about vaccination supplies due to shifts in EU export policy, the UK economy appears to remain on track to return to its pre-pandemic output faster than most other developed economies.” It appears that this concern was underappreciated. As UK vaccination rates have slowed – thanks in part to supply issues – the British Pound’s appeal has worn off.
British Pound Forecast: Digesting Gains Around Spring Budget - Levels for GBP/JPY, GBP/USD, EUR/GBP Advertisement
British Pound Outlook:
After a strong run higher, the British Pound may be due for a period of pullback, if not consolidation, before further gains. But longer-term technical studies suggest more strength for Sterling.
Reaction to the UK Spring Budget was muted among the major GBP-crosses, not a surprise given that the contents of the budget are known ahead of the official parliamentary unveiling.
The latest shifts in retail trader positioning suggest different biases among the major GBP-crosses.
UK Spring Budget a Reason to Pause
British Pound Forecast: Reopening Plan Capping EUR/GBP, Buoying GBP/USD 2021-02-23 07:30:00 Daniel Moss, Analyst
British Pound, GBP/USD, EUR/GBP, UK Reopening, Covid-19 Vaccinations – Talking Points:
Equity markets gained ground during APAC trade as stabilizing yields firmed market sentiment.
The British Pound may continue to outperform on the back of Prime Minister Johnson’s reopening plan.
GBP/USD guided higher by an Ascending Channel formation.
EUR/GBP poised to extend losses after crashing through key support. Advertisement
Asia-Pacific Recap
Equity markets regained lost ground during Asia-Pacific trade, with risk appetite firming in the wake of stabilizing bond yields. Australia’s ASX 200 climbed 0.86% and Hong Kong’s Hang Seng Index surged 1.86%. Copper continued its surge to its highest levels since 2011, while crude oil prices crept towards $63 a barrel.