British Pound Dollar Rate Forecast: GBP/USD Looks to Halt Seven Week Losing Streak

The US dollar continues to dominate global forex markets in late summer and we would hesitate to call an end to the declines just yet. However, signs are emerging that the pound sterling could be about to put an end to what has become a rather protracted losing streak. At the time of this article’s latest update the British pound to US dollar exchange rate (GBP/USD) is seen trading 0.05 pct higher on a day-to-day basis; our last quote on the rate is at 1.6586. Long-suffering GBP bulls will welcome the current move higher, as noted by Bill McNamara at Charles Stanley:

 “The pound has now lost ground against the dollar for the seventh week in a row and last week’s 0.72% decline took it to its lowest reading since April. This slide leaves it looking oversold but the chart is still pointing towards further weakness.”

(Keep in mind that these all quotes here are spot market rates to which a discretionary spread is added by your bank/provider. An independent FX provider will however guarantee to undercut your bank’s offer, in some cases delivering up to 5% more FX. Please learn more.)

Sterling Dollar Rate Undervalued Warn JPMorgan

A recent forex analysis issued by one of the major banks we follow has caught our attention today. As mentioned, the USD has dominated proceedings for a number of weeks now, but were you to listen to the team at JPMorgan then you would get the sense that this is a rather attractive dip within which to stock up on GBP ahead of a recovery.

“With sterling, the currency is underperforming on a short-term softening in activity and inflation data but there is no change to our call for a Q1 2015 hike. So the forecast is unchanged but the near-term trading strategy is short the currency going into the wildcard of the Scottish referendum,” says a note from JPMorgan.