United States Institute for Supply Management (ISM) will release services Purchasing Managers' Index (PMI) on October 5, 17:00 GMT+3.
What do banks expect for GBP/USD?
There’s seldom a single opinion among different analysts. However, this time the views on the prospects of the British pound versus the US dollar are mostly the same. We have read the news and put this all together for your.
JP Morgan thinks that GBP/USD has settled above 1.30. If this support holds, the pair will aim to 1.3280/90. In this area, there’s a significant resistance, says JPM.
Analysts at Lloyds Bank point out that Britain has released some positive economic figures so far, so GBP/USD will likely stay between 1.3050 and 1.3285 in the near term. The bank is cautious about the further upside: to be sure that the pair is able to retest 1.3385 and 1.3515, it has to break above 1.3285. Otherwise, it will risk sliding to 1.2800-1.2700.
Technical analysis provided by Commerzbank offers the same resistance level: 1.3285. The initial resistance is at 1.3175 (minor downtrend). On the downside, a decline below 1.2908 will open the way down to 1.2690 (200-day MA).
The longer-term forecasts for GBP/USD
Analysts at Thomson Reuters claim that GBP/USD can rise as high as to 1.50 if foreign demand for UK stocks grows this year. British stocks used to underperform, but things may change after Boris Johnson’s victory in the recent election. BNY Mellon, however, reminds that the GBP will still be exposed to big risks related to the UK-EU negotiations this year.
The United States will publish the ISM Manufacturing PMI on September 1, at 17:00 MT time (GMT+3).
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