Pound to Dollar Predictions: New Uptrend Forecast for GBP/USD Exchange Rate

Modified: Friday, 24 April 2015 11:55 BST - Written by John Cameron

STORY LINK Pound to Dollar Predictions: New Uptrend Forecast for GBP/USD Exchange Rate

Price action during yesterday’s afternoon session was once again dominated by news from Greece. The euro (currency:EUR) was weighed down during the early part of this week by fears that the left-wing Syriza administration in Athens was on the brink of announcing an all-out debt default. Near-term fears of such an outcome were eased early on yesterday when the eurogroup of Finance Ministers began playing down the significance of today’s session as a staging post in the ongoing Greek debt drama.

Analysts had pointed to today – April 24th – as a key day in the long-running saga due to the EU / IMF / ECB’s insistence that it represented a key deadline for Greece’s leaders to provide a comprehensive list of economic reforms enabling her to qualify for further bailout funding. However, the eurogroup’s insistence that it does not now mark a significant date and that the process is ongoing allowed the euro some breathing space. The Pound Sterling euro exchange rate slumped to an intraday low of 1.3914 as a consequence.

Meanwhile, on the other side of the pond, the US Dollar (currency:USD) was moving in the other direction. A raft of disappointing data releases in the States caused investors to move against the Buck – weekly labour market numbers missed expectations, showing a higher than anticipated level of Continuing Claims and Initial Jobless Claims, but it was March’s US New Home Sales data which really hit the Greenback hard. This monthly release has been closely-monitors by traders looking for an edge during recent years thanks to the US property market’s role in triggering the global credit crisis of 2008. Yesterday’s surprisingly poor month-on-month showing of -11.4% versus the previous month’s showing of 7.8% hinted at a fresh slowdown. The fall-out saw investors move against the Buck, sending the GBP USD exchange rate up to an intraday high of 1.5058 yesterday afternoon. Analysts forecast that he pair needs to eclipse Wednesday’s 1-month high of 1.5080 to confirm a new uptrend.

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