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GBP/USD Daily Fundamental Forecast – October 24, 2016

By:
Colin First

Like other pairs today, GBPUSD has also been affected by the general USD strength across the board as of today morning. The pair has been generally quiet

GBP/USD Daily Fundamental Forecast – October 24, 2016

Like other pairs today, GBPUSD has also been affected by the general USD strength across the board as of today morning. The pair has been generally quiet over the past week with not much data and with the UK leaders and the euro leaders also not commenting much on the Brexit process, the pair continues to consolidate and range with a slight bullish tone. But users are well aware that the overall trend on this pair continues to be highly bearish and they would do well to keep selling all the rallies in this pair atleast for the next few weeks as the trend does not seem to be ready to change anytime soon.

The pair spent most of its time on Friday above 1.2200 but it could not break through the resistance region at 1.2240 convincingly and hence, it was more of a consolidation between 1.2200 and 1.2240 on Friday. Today morning, due to the USD strength and due to flows, the pair has broken below 1.2200 and sits at 1.2199 and the break so far has not been convincing as yet. We may get a slight bounce towards 1.2240 during the course of the day.

GBPUSD Hourly
GBPUSD Hourly

There is no economic news scheduled to be released from the UK or the US for today and so the prices are likely to be dominated by the flows and continuation of trends than anything. The week is also the last of the month and so, the prices of GBPUSD are generally highly affected by the flows as the UK has to pay membership fees to the EU that is worth billions of pounds and that usually happens towards the end of the month. We also have the UK GDP that will be released on Thursday and any slip in that data will add to the pressure on the pair and push it towards 1.2100 and further. But for today, we expect some consolidation between 1.2240 and 1.2160 with a neutral bias dominated by flows.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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