A vulnerable Dollar has elevated the GBPUSD
to above 1.3200 and further upside is on the cards if bulls secure another daily close above the 1.3200 level.
From a technical standpoint, the GBPUSD
has breached a key resistance.
The EURUSD and GBPUSD
also finished the year on highs.
is currently trading around 1.52, but analysts are predicting that it could weaken against the dollar if the UK election does not produce a clear winning party or if there is a change in Government.
At the start of September of 22 firms publishing their forecasts, the consensus for GBPUSD
in the next three months is 1.5158.
Wednesday's focus for the UK will be both the construction PMI and the parliamentary vote for airstrikes in Syria which may reduce investor attraction towards the Sterling, resulting in a further decline of the GBPUSD
Moves in EURUSD or GBPUSD
are largely governed by changes in four key drivers: general risk appetite, interest rate differentials, country specific risk and oil prices:
Technically, the GBPUSD
is bearish and the 1.500 support has been breached, which may act as a dynamic resistance that should invite an opportunity for sellers to send prices back down towards 1.5000.