Exchange Rate Calculator

The exchange rate between the British Pound (GBP) and the Brazilian Real (BRL) has exhibited notable fluctuations over the past few months. This report provides an analysis of the recent trends, technical indicators, and future projections for the GBP/BRL currency pair.

Recent Exchange Rate Trends

As of May 3, 2025, the GBP/BRL exchange rate stands at approximately 7.4045, reflecting a slight increase of 0.02% from the previous day's closing level. Over the past six months, the exchange rate has experienced significant volatility, with a high of 8.4461 BRL per GBP on December 25, 2024, and a low of 7.1528 BRL per GBP on February 10, 2025.

In the first quarter of 2025, the GBP/BRL exchange rate demonstrated a downward trend, reaching its lowest point in early February. Subsequently, the rate began to recover, peaking at 7.995 BRL per GBP on March 5, 2025. Since then, the exchange rate has stabilized, hovering around the 7.4 to 7.5 range.

Technical Analysis

Technical indicators as of March 5, 2025, suggested a bullish sentiment for the GBP/BRL pair. The Relative Strength Index (RSI) stood at 88.245, indicating overbought conditions. Similarly, the Stochastic Oscillator (STOCH) was at 90.645, also signaling an overbought market. The Moving Average Convergence Divergence (MACD) value of 0.094 supported a buy action.

Moving averages further reinforced the bullish outlook. The 5-day simple moving average (SMA) was at 7.9860, while the 10-day SMA stood at 7.9634, both indicating buy signals. Longer-term moving averages, such as the 50-day and 100-day SMAs, were at 7.6834 and 7.5270, respectively, also suggesting a buying trend.

Forecast and Projections

Short-term forecasts indicate a slight decline in the GBP/BRL exchange rate. Analysts predict a decrease from 7.407 to 7.339, representing a change of approximately -0.922%. However, other projections suggest a gradual appreciation of the GBP against the BRL over the next few years. By the end of 2025, the average exchange rate is expected to be around 7.8731 BRL per GBP, with a range between 7.8338 and 7.9125. Looking further ahead, the average rate is projected to reach 8.4131 by 2030 and 8.9218 by 2035.

Factors Influencing the Exchange Rate

Several factors contribute to the fluctuations in the GBP/BRL exchange rate:

• Economic Indicators: Differences in economic growth rates, inflation, and employment figures between the UK and Brazil can impact the exchange rate.

• Monetary Policies: Decisions by the Bank of England and the Central Bank of Brazil regarding interest rates and monetary policies influence currency valuations.

• Political Events: Political stability and events such as elections or policy changes in either country can lead to currency volatility.

• Global Market Sentiment: Investor sentiment and risk appetite, especially in emerging markets like Brazil, can affect the demand for BRL relative to GBP.

Conclusion

The GBP/BRL exchange rate has experienced significant volatility over the past few months, influenced by a combination of economic indicators, monetary policies, political events, and global market sentiment. While short-term forecasts suggest a slight decline, long-term projections indicate a gradual appreciation of the GBP against the BRL. Investors and businesses engaged in transactions involving these currencies should closely monitor these factors to make informed decisions.