GBP/USD TREND FORECAST (FUNDAMENTAL + TECHNICAL ANALYSIS)
Updated
Based on the economic indicators and forecasts for 2024, the US dollar is expected to be stronger than the British pound. This is due to several factors, including higher projected GDP growth in the US, potentially more persistent core inflation in the UK, and the possibility of the Bank of England cutting interest rates in mid-2024, which could weaken the pound against the dollar.
According to economic analysts, they expect a softer landing for the UK economy in Q4 2024. The recession is anticipated to start later, in the second half of 2024.
According to economic analysts, they expect a softer landing for the UK economy in Q4 2024. The recession is anticipated to start later, in the second half of 2024.
Comment
FUNDAMENTAL ANALYSIS: Based on the economic indicators and forecasts for 2024, the US dollar is expected to be stronger than the British pound. This is due to several factors, including higher projected GDP growth in the US, potentially more persistent core inflation in the UK, and the possibility of the Bank of England cutting interest rates in mid-2024, which could weaken the pound against the dollar.
The Bank of England has kept interest rates at 5.25% and expects to fall from 5.25% to around 4.75% by the end of 2024.
According to economic analysts, they expect a softer landing for the UK economy in Q4 2024, The recession is anticipated to start later, in the second half of 2024.
TECHNICAL ANALYSIS :
The British Pound is expected to trade at 1.25 by the end of Q3 24, according to Trading Economics global macro models and analysts' expectations." we estimate it to trade at 1.21 in 12 months time ".
The overall idea is we might see the British Pound testing a stronger level such as 1.25, Then if the data still points to a weaker pound and BOE still looking for a soft landing then likely the British Pound will FALL.
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