GBP/USD Daily Forecast – 28 December

Despite, expected lack of volatility due to Christmas Eve, Sterling was pushed much higher in the course of the Thursday's session, breaking once again above 1.49 handle, and testing 1.4950 handle as a resistance, where in fact it found it, and pulled back slightly by the end of the session.On Monday we cannot expect any larger movements as there is no data releases and it is likely that holiday's lack of liquidity will continue. Read more...

GBP/USD Weekly Forecast – 28 December – 01 January

Though there was lack of volatility during the last week, with holiday season beginning Sterling was initially pushed lower, all the way to 1.48 handle, where it found some amount of support and managed to rebound significantly by the week's closing breaking above 1.49 handle. Read more...

GBP/USD Daily Forecast – 28 December

With beginning of holiday season, and approaching of New Year traders are speculating on possible BoE's rate hike in 2016. So far the outlook for UK economic growth remains solid although the latest data showed GDP growth was slower in both the second and third quarters of this year. The inflation outlook, however, remains subdued and uncertain. The minutes from the December meeting of the Bank of England's (BoE) Monetary Policy Committee (MPC) showed that policymakers saw downside risks to inflation from protracted low oil prices, and weaker unit labor costs growth so far this year.

GBP/USD Weekly Forecast – 28 December – 01 January

Events that marked the week:

From the UK, on Tuesday, Public Sector Net Borrowing data was released.Public sector net borrowing excluding public sector banks decreased by £6.6 billion to £66.9 billion in the current financial year-to-date (April 2015 to November 2015) compared with the same period in 2014. Public sector net borrowing excluding public sector banks increased by £1.3 billion to £14.2 billion in November 2015 compared with November 2014. Compared with October 2015 borrowing increased to £13.6 billion.