GBP/USD Daily Price Forecast – GBP/USD Bounces As Dollar Wanes

Like most of the other instruments, the pound also bounced off from the lows of its range around the 1.29 region over the last 24 hours and the pound bulls have also made a stand against the dollar bulls and it is going to be a nice ongoing battle between them in the coming days. The day yesterday did not begin too kindly for the pound bulls as the speech from the Fed Chief, Powell, paving the way for further rate hikes in the coming months, led to another bout of dollar buying.

GBPUSD Bounces Off Support

This led the pound lower in early trading yesterday and there was a danger that the dollar strength could assume alarming proportions as the day progresses but none of that happened as the pound managed to regain back its lost ground and in the process, the bulls have now made a stand against the dollar and it should be interesting to see how this pans out in the coming days. There is a range of news from the US and the UK in the coming days which should lead to some volatility in the pair and once the dust settles down, we should be able to see who is in control of the pair at that time.

Looking ahead to the rest of the day, we have the NFP data from the US later in the day and this will give us a glimpse of how strong the economy of the US is and how the rate hikes are beginning to percolate into the US economy. This will also tell us how much space there is, for future rate hikes from the Fed and this should set the overall tone for the dollar strength or weakness for the coming days. The pound is also likely to be volatile as more details emerge, about how the Brexit process is going to pan out and whether the UK PM May would be able to hold on to her position and emerge stronger from all these developments.