GBP/USD Daily Price Forecast – GBP/USD Rnage Bound As Investors Focus on BOE Updates amid Subdued US GreenbackThe pair is buoyed by Brexit optimism, renewed US-China trade talks led USD weakness.
The GBP/USD pair had good two-way moves on Wednesday and was being influenced by a combination of factors. Reports of a potential leadership challenge to UK PM Theresa May initially weighed on the British Pound and dragged the pair to an intraday low level of 1.2980. The down-tick, however, was quickly bought into and was being supported by some fresh US Dollar selling, especially after softer US PPI figures that showed the wholesale cost of goods and services declined for the first time since February 2017. As of writing this article, the GBP/USD pair is trading near flat at 1.3037 down by 0.07% on the day.
Pair Turns Range Bound as Investors Await Macro Data Updates For Fresh Impetus
The pair got an additional boost after the Wall Street Journal reported that the US Treasury Secretary Steven Mnuchin sent a letter to Chinese officials to propose trade talks in the next few weeks, which exerted some additional downward pressure on the greenback. This coupled with some fresh positive Brexit headlines, indicating that the EU would start redrafting the Irish Brexit protocol to appease the UK helped the pair make some gains in late North American and early Asian market hours. The pair jumped back closer to over one-month tops but once again stalled the up-move just ahead of the 1.3100 handle during yesterday’s North American market hours.
The pair now seems to have entered a bullish consolidation phase and was seen oscillating in a narrow trading range through the late Asian session on Thursday as focus shifts to the BOE monetary policy meeting. This coupled with the latest US consumer inflation figures might influence the Fed rate hike expectations and eventually provide some meaningful impetus. From a technical perspective, the pair on Wednesday managed to rebound from an important confluence support, comprising of 100-hour SMA and a short-term ascending trend-line. The mentioned support, currently near the key 1.30 psychological mark, might continue to protect the immediate downside, on the flip side the 1.3080-85 region remains an immediate strong resistance to conquer, above which the pair is likely to aim towards the 1.3130 supply zone.