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GBP Trends, News and Forecasts for 2020

Forecasts for the British pound change all the time, affected by news events such the Coronavirus pandemic, Brexit negotiations and the relative sentiment towards the UK economy. This continually updated article reviews the latest forecasts from banks and FX experts as well as news and recent movements of GBP in the currency markets.

British pound in the markets

GBP will rise to 1.25 against the euro according to Standard Bank. The coronavirus pandemic has replaced Brexit in the headlines and means that the deadline for a trade deal with the Eurozone this year could either be pushed back, delaying a risk for the currency, or see more favorable terms given to the U.K.

This is a remarkable change of fortunes for GBP which was sold-off after the Brexit vote and again after the virus forced a lockdown in London, the world’s largest foreign-exchange centre. Against the dollar, sterling touched the lowest level in 35 years in March as traders sought the safety of the USD.

The following sections show a summary of bank forecasts for popular GBP cross rates that we have reviewed, you can view each forecast article for more details.




GBP/USD - 90 day trend
ALERT:14-DAY HIGHS |
GBP/USD at 1.2348 was trading 0.8% below AVG:1.2444 with LO:1.1467 and HI:1.3098 (90 days). ALERT: GBP/USD rose to 14-DAY HIGHS.




 


 
GBP/AUD - 90 day trend
ALERT:90-DAY LOWS |
GBP/AUD at 1.8518 was trading 5% below AVG:1.9487 with LO:1.8512 and HI:2.0468 (90 days). ALERT: GBP/AUD dropped to 90-DAY LOWS.

 




 


 
GBP/EUR - 90 day trend
ALERT:30-DAY LOWS |
GBP/EUR at 1.1119 was trading 2.3% below AVG:1.1375 with LO:1.0615 and HI:1.2042 (90 days). ALERT: GBP/EUR dropped to 30-DAY LOWS.

 


GBP General Info and Influences

The British pound (ISO: GBP) is one base unit of sterling – that being the name of Britain's currency – and is subdivided into 100 pence.

Contributing to around 13% of all foreign exchange deals, the pound, or sterling, is the world’s fourth most traded currency.

Reputedly, sterling is 1200 years old. It is said that Anglo-Saxon traders used silver pennies in the eighth century called ‘sterlings’, 240 of which would equal one pound in weight.

Due to its membership of the European Union, Britain could have adopted the euro as its currency upon its introduction in 1999, however the British government opted against this because it wanted to retain monetary policy independence and because it perceived euro adoption as offering only small economic benefits.

In recent years, the most significant event to affect sterling’s valuation was the UK’s vote to leave the European Union on June 24th 2016 – a day on which the exchange rate for GBP/USD fell by as much as 11%.

In the past two decades, the pound’s highest valuation against the dollar occurred in November 2007 when GBP/USD reached 2.1161. Its lowest value came in October 2016, three-and-a-half months after the historic ‘Brexit’ vote, when GBP/USD reached 1.1905.

 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.
 
 

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