GBP/USD Daily Price Forecast – GBP/USD Struggles To Form a Trend as FOMC Update & Brexit Headline Play Tug-Off War

The GBP/USD pair was on a wild ride this Wednesday, up and down as uncertainty about Brexit kept investors on their toes. The pair peaked at 1.3216 right after the Fed monetary policy announcement but trimmed gains after some second toughs to what the removal of “accommodative” to the statement meant. There were multiple comments from EU and UK authorities hitting the wires through the London session, with EU’s Chief Negotiator Barnier who said: “working for an orderly Brexit and a new partnership that respects the UK’s sovereignty, as well as the founding principles of the EU, such as the integrity of the single market.” He later added that the EU wants no-deal plans to intensify, as policymakers are worried about the uncertainty surrounding Brexit.

US Macro Data Will Be Main Driving Force Today

PM May later reiterated that the UK is not seeking for a partial membership of the single market, while Irish FM said that a disorderly could cost Ireland 3 or 3.5 GDP points over the years afterward. Odds for a no-deal remain high, but some hopes of a last-minute agreement prevail. Hawkish interpretation of US Fed rate decision helped USD gain upper hand in early Asian market hours and move as low as 1.3123 but influence of Brexit headlines on investor sentiment helped cap downtrend movement above 1.3100 handle indicating Brexit headlines still has the power to turn momentum in Sterling’s favor. As of writing this article the GBPUSD pair is trading at 1.3131 down by 0.28% on the day.

Today’s market hours bring a speech by the Bank of England’s (BoE) Governor Mark Carney, who is expected around 14:00 GMT, but after the US Fed’s as-expected showing in the markets on Wednesday, today is similarly all about the USD, with final annualized US GDP at 12:30 GMT (forecast 4.2%, last 4.2%) as well as Core Personal Consumption Expenditure (forecast 2%, last 2%), and Carney’s speech finds itself bookended by US data, with Fed President Jerome Powell expected to begin speaking at 20:30 GMT. Technical indicators in the 4 hour chart are losing upward momentum within positive territory, somehow suggesting that speculative interest is not ready to take over the 1.3200 figure. Nevertheless, the pair posted a higher high and a higher low for a third consecutive day, which means that sellers are not interested at the time being. Brexit headlines will likely continue to set the tone for Sterling over the upcoming days. Expected support and resistance for the pair are at 1.3125, 1.3090, 1.3055 and 1.3215, 1.3260, 1.3300 respectively.