GBP/USD, EUR/GBP Outlooks Sterling Weakens After Bank Of England Commentary

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4/22/2024 5:21:30 AM

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Apr 22, 2024 GBP/USD, EUR/GBP Outlooks – Sterling Weakens After Bank of England Commentary Apr 21, 2024 Markets Week Ahead: Gold, EUR/USD, USD/JPY - BoJ, US GDP, Core PCE, Big Tech Earnings Apr 21, 2024 US Dollar Forecast: Markets Await US GDP & Core PCE - EUR/USD, USD/JPY, GBP/USD
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Host: Duration: min 09:17:24 widgets/economicCalendar._abbr () Actual Forecast PreviousRevised EUR/USD Bullish
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Note: Low and High figures are for the trading day.
Data provided by News Markets Week Ahead: Gold, EUR/USD, USD/JPY - BoJ, US GDP, Core PCE, Big Tech Earnings 2024-04-21 17:00:00 US Dollar Forecast: Markets Await US GDP & Core PCE - EUR/USD, USD/JPY, GBP/USD 2024-04-21 06:00:00 Oil - US Crude Mixed
1h Last updated:Apr 22, 2024

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Note: Low and High figures are for the trading day.
Data provided by News The Impact of Geopolitical Tensions on Oil Prices 2024-04-18 18:00:03 Market Sentiment Analysis & Outlook: Gold, Silver, Crude Oil 2024-04-18 17:00:00 Wall Street Mixed
1h Last updated:Apr 22, 2024

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Note: Low and High figures are for the trading day.
Data provided by News Dow retreat slows and S&P 500 holds above 5000, while Hang Seng rallies sharply 2024-04-18 10:04:10 Market Sentiment Analysis and Outlook: Crude Oil, Dow 30, AUD/USD 2024-04-17 17:00:00 Gold Mixed
1h Last updated:Apr 22, 2024

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Note: Low and High figures are for the trading day.
Data provided by News Markets Week Ahead: Gold, EUR/USD, USD/JPY - BoJ, US GDP, Core PCE, Big Tech Earnings 2024-04-21 17:00:00 US Dollar Braced for Further Swings in Risk as Middle East Conflict Escalates 2024-04-19 10:30:14 GBP/USD Mixed
1h Last updated:Apr 22, 2024

Long Short
Note: Low and High figures are for the trading day.
Data provided by News GBP/USD, EUR/GBP Outlooks – Sterling Weakens After Bank of England Commentary 2024-04-22 07:59:04 US Dollar Forecast: Markets Await US GDP & Core PCE - EUR/USD, USD/JPY, GBP/USD 2024-04-21 06:00:00 USD/JPY Mixed
1h Last updated:Apr 22, 2024

Long Short
Note: Low and High figures are for the trading day.
Data provided by News Markets Week Ahead: Gold, EUR/USD, USD/JPY - BoJ, US GDP, Core PCE, Big Tech Earnings 2024-04-21 17:00:00 US Dollar Forecast: Markets Await US GDP & Core PCE - EUR/USD, USD/JPY, GBP/USD 2024-04-21 06:00:00 MoreView More

Government Budget to GDP (2023)Actual: -3.6%Previous: -3.7%
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GBP/USD and EUR/GBP Analysis and Charts
GBP/USD Daily Price Chart
EUR/GBP Daily Price Chart
GBP/USD and EUR/GBP Analysis and Charts

UK rate cut now seen in August.
EUR/GBP at a new multi-month high.

Most Read: British Pound Weekly Forecast - Lighter Data Week Could Mean Some Respite
Our brand new Q2 British Pound Forecast is available to download for free below:
Recommended by Nick Cawley Get Your Free GBP Forecast Get My Guide
UK inflation will continue to fall towards target, and potentially quicker-than-originally predicted, according to the governor and deputy governor of the Bank of England. Earlier this week governor Bailey said that inflation was moving lower and 'in the right direction' for a cut and that the UK is 'disinflating at what I call full employment...strong evidence now that the process is working its way through'.
Late Friday, BoE deputy governor Dave Ramsden said that he has now 'become more confident in the evidence that risks to persistence in domestic inflation are receding, helped by improved dynamics.' Ramsden added that relative to the February official forecasts risks to inflation are pointed to the downside, 'with a scenario where inflation stays close to the 2% target over the whole forecast period at least as likely.' The BoE forecast for a three-year period.
The latest UK rate cut probabilities have shifted forward with the first 25 basis point cut now expected at the August 1st central bank meeting.
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With UK rate cuts now seen earlier, the British Pound is weakening across the board. Against a resilient US dollar , cable has now fallen below 1.2400 and seems set to test the 1.2313 (61.8% Fibonacci retracement) and then the 1.2303 level. Below here, big figure support at 1.2200 and 1.2100 before 1.2039 comes into focus.
Recommended by Nick Cawley How to Trade GBP/USD Get My Guide GBP/USD Daily Price Chart
IG Retail data shows 71.54% of traders are net-long with the ratio of traders long to short at 2.51 to 1.The number of traders net-long is 0.56% lower than yesterday and 1.64% higher from last week, while the number of traders net-short is 2.07% higher than yesterday and 5.74% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall.
See How Changes in IG Client Sentiment Can Help Your Trading Decisions
EUR/GBPBullish Data provided by

of clients are net long. of clients are net short.

Change in	Longs	Shorts	OI
Daily	1%	10%	6%
Weekly	-41%	91%	-4%

What does it mean for price action? Get My Guide

Sterling's weakness can be seen a little better against the Euro . The ECB is fully expected to cut rates by 25 basis points in June, and potentially again in July, leaving the ECB ahead of the BoE in the rate-cutting cycle. Despite this, the Euro strengthened sharply against the British Pound at the end of last week and is looking to build on those gains today. A clear break of 0.8620 would leave 0.8701 and 0.8715 as the next resistance levels.

EUR/GBP Daily Price Chart

What is your view on the British Pound – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1 .

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