Have GBP Bulls Run Out of Steam?

Have GBP Bulls Run Out of Steam?

British Pound (GBP) Talking Points:

  • Below is a preview from the Q4 Technical Forecast for the British Pound.
  • To access the full forecast for the British Pound, click on the link below.

Much like the end of Q2, the global pandemic continues to reign over the prospects of a swift economic recovery for the UK and its major counterparts, placing vaccine rollouts at the forefront of both economic policy and projections.

Despite a strong start to 2021, an influx of stimulus and a focus on herd immunity for the EU and the US, the British Pound lagged its peers, forcing it to return gains earned earlier in the year.

An additional catalyst for the slowing momentum of the UK economy arose with the spread of the Delta variant which resulted in renewed lockdowns and a decrease in economic output.

For the GBP as a whole, Q4 may present challenges for Sterling bulls as the bullish rhetoric in the earlier part of the year continued to lose traction throughout Q3.

Rising inflationary pressure, global debt and fears over the health of the China economy are additional factors that will likely influence the performance of the Pound against major currency pairs for the remainder of the year.

To get the full GBP forecast for Q4, click on the link below:

GBP/USD Weekly Chart

Chart Prepared by Tammy Da Costa using TradingView

— Written by Tammy Da Costa, Analyst for DailyFX.com

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Originally Posted on: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/10/01/British-Pound-GBP-Q4-Technical-Forecast.html
By: Tammy Da Costa

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