The Long-Term Outlook For The Pound Is Bullish

• 23 Feb 2018

GBP/USD

The longer-term outlook for the GBP/USD pair is bullish. Despite the pair reaching oversold conditions, moving averages suggest further upside. A ‘Golden Cross’ suggests that the bullish momentum will continue over the next month.

GBP/CHF

Sterling dominance is also expected to continue in the longer-term horizon for the GBP/CHF pair.  Additionally, the pair has bounced off a previous resistance line at the 1.289 price level which is now acting as a support. If the 50- day SMA moves above the 100-day SMA then weight is given to the uptrend.

GBP/NZD

Another example of the Pound dominating against its peers is the GBP/NZD pair. A bullish crossover of the 50- day SMA over the 100-day SMA is imminent and provides weight to the uptrend. Momentum indicators are also currently in bullish territory.

USD/CAD

The USD/CAD has begun a sharp bullish run and is fast approaching the 50-day SMA. There is also a resistance line at the 1.289 price level which the SMA has overlapped. Clearly a break of these resistance levels would provide support for the U.S. Dollar which has had a weak start to the year.