GBP/USD Daily Price Forecast – GBPUSD Tests 1.280 Handle Ahead of London Market Hours

The British pound went sideways during most of the trading session on Thursday and early Asian market hours today saw the pair trade range bound ahead of a busy Friday’s London market hours. The pair is continuing to be plagued by Brexit woes, meanwhile the pair saw some sell of activity yesterday with sharp resistance around 1.2905/15 price handle. The pair’s sharp decline in current market could be viewed as a result of activity from retail traders as most retail traders in market usually chase the trading activity of some of key players in the market. But major investors continue to remain patient ahead of busy London market hours which is scheduled to see a bounty of first tier news that could greatly affect the pair’s momentum moving forward. The pair is well inside oversold region and a positive macro data update today could help the pair make a bullish rebound. The GBP/USD is trading into 1.280 handle (new 2018 low’s) ahead of Friday’s London market session after the US Dollar saw a resurgence in Thursday’s latter half, taking the GBP/USD off the day’s high of 1.29119.

Both US & UK Macro Data To Influence Today’s Momentum of The GBP/USD Pair

Friday sees the next round of GDP figures for the UK, dropping at 08:30. The UK’s GDP for 2018’s second quarter is expected to bounce slightly, forecast to come in at 0.4% versus the previous quarter’s 0.%. There is a good-sized docket of data for the GBP today, but market’s primary focus will be on the GDP figures for the UK and the US’ upcoming CPI reading. The US Core CPI figure is expected to clock in at 2.3%, holding steady with the previous reading, and Friday promises to deliver a data-driven day for the GBP/USD to cap off the trading week. Other key macro updates for the pair include manufacturing production data & trade balance data in UK market and Federal budget balance data & U.S. Baker Hughes Oil Rig Count in US market.

From a technical perspective, the British Pound is clipping into bottom-of-the-barrel against the Greenback, and further downside is likely to kick into effect if today’s GDP reading misses the mark. Considering the Pound is out of market favor, lower lows for the year should be expected. The downward trend is firmly in place according to intraday technical readings, as in the 4 hours chart, it continues developing below a bearish 20 SMA, while technical indicators resumed their declines, with the Momentum nearing weekly lows and the RSI at 27, with no signs of changing course. Expected support and resistance for the pair are at 1.2780 / 1.2750 / 1.2720 and 1.2875 1.2920 1.2960 respectively.