GBP/USD: Bullish Extension Anticipated as Pound Sterling Price Rises – News and Forecast

Time Stamp: March 21, 2023 3:53 PM
Source Node: 2526258

The GBP/USD currency pair has been on a bullish trend in recent weeks, with the pound sterling rising against the US dollar. This trend is expected to continue, with analysts predicting a bullish extension for the pair.

One of the main drivers of this bullish trend is the progress being made in Brexit negotiations. The UK and the EU have been working towards a trade deal, and recent reports suggest that a deal could be reached soon. This has boosted confidence in the pound sterling, as it reduces the uncertainty surrounding the UK’s future relationship with the EU.

Another factor contributing to the pound’s strength is the weakening of the US dollar. The ongoing COVID-19 pandemic has had a significant impact on the US economy, leading to a decrease in demand for the dollar. Additionally, the US Federal Reserve has implemented a number of measures to support the economy, including cutting interest rates and increasing its bond-buying program. These measures have put downward pressure on the dollar, making it less attractive to investors.

Looking ahead, analysts are optimistic about the outlook for the GBP/USD pair. Many believe that a trade deal between the UK and the EU would provide a significant boost to the pound sterling, potentially pushing it even higher against the dollar. Additionally, with the US economy still struggling to recover from the pandemic, there is likely to be continued weakness in the dollar.

However, it’s worth noting that there are still risks to this bullish outlook. The ongoing pandemic could continue to disrupt global markets and impact currency movements. Additionally, there is always the possibility that Brexit negotiations could break down, leading to renewed uncertainty and volatility in the pound sterling.

Overall, though, the outlook for the GBP/USD pair is positive. With progress being made in Brexit negotiations and weakness in the US dollar, there is reason to believe that the pound sterling will continue to rise against its American counterpart. As always, though, it’s important for traders to stay informed and keep an eye on any developments that could impact currency movements.