British Pound GBP Trend Forecast 2020
Currencies / British Pound Feb 16, 2020 - 06:47 PM GMTThis is the final part of my British Pound Analysis that concludes in a detailed trend forecast for 2020
- British Pound 2019 Review (Part1)
- Political Implications
- Fundamentals
- US Dollar Index
- GBP Long-term analysis
- GBP Trend Analysis
- Elliott Wave Theory
- GBP 2020 Forecast Conclusion
However the whole of analysis was first made available to Patrons who support my work: British Pound GBP Trend Forecast 2020
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Formulating a Forecast Conclusion
It looks like sterling is in a NEW bull market! Which means that sterling revisiting the likes of 1.20 anytime soon is unlikely.
Sterling has had a powerful bull run to 1.35 and is now consolidating that rally, which could see sterling correct to 1.28, or maybe just mark time around 1.30 before resuming it's bull run.
Initial bull market targets for 2020 would be 1.35, 1.375, 1.40, and 1.44 where we can expect sterling to pause on it's way to 1.48. And we may even see a headline grabbing spike to 1.50.
Of course GBP won't get towards 1.50 in a straight line so do expect some volatility / oscillation where the gyrations will likely be focused on economic data rather than Brexit news.
So overall we should see a continuation of the bull market that began in September 2019, that could run all the way into the end of 2020 and beyond.
GBP 2020 Forecast Conclusion
Sterling is a in a NEW bull market! Therefore my forecast conclusion is for sterling to target a trend to at least £/$ 1.44 by late 2020 and likely trade towards 1.48 with a good chance of a spike to 1.50.
Peering into the Mists of Time
Just as the doom and gloom merchants of September 2019 that populate the mainstream press AND blogosFear got sterling's trend very badly wrong with their perma view that Brexit chaos would see sterling visit £/$1.10, or even lower. Then it looks likely that not only will current sterling bearishness also be found to be WRONG for 2020, again due to being fixated on Brexit noise. But that we many in fact be at the early stage of a major shift in sterling that many in a few short years will look back on when sterling is trading north of £/$1.70 and wonder why they did not see the trend coming, if only they had bought sterling when it was cheap, hoping for a second chance at buying sterling at near £/$1.30. Of course by then £/$1.30 will be long gone.
For immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.
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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
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