GBP/USD Daily Price Forecast – Sterling Trades Rangebound As Brexit Still Remains At Standstill

The GBPUSD pair yesterday saw two-way price action and closed on a dovish note. Following, Monday’s move in House of Commons when lawmakers moved to pass Letwin Amendment was seen as a welcoming move by traders. But now, traders have begun to doubt if Brexit will ever see progress as all eight amendments tabled yesterday were rejected at end of the parliament session. With no change in standstill scenario of Brexit despite the change in control dynamics, Brtish Pound lost all the gains it made during late European and early American session closing for the day on a dovish note. The scenario reminds me of the saying too many cooks spoil the broth.

US GDP Update Eyed For Short Term Trading Cues

The current scenario in the UK could be the best example for the saying as of today. The UK continues to exhibit indecisiveness and lack of capacity to make a critical decision stand by the same and move forward as too many players are trying to make best of current opportunity in order to gain upper hand in internal political struggle and power play which has resulted in sharp loss in economy for UK citizens and Sterling. As of writing this article, the GBPUSD pair is trading at 1.3162 down by 0.20% slightly above overnight lows. Investors focus now turns to UK parliament session scheduled tomorrow when PM May’s Brexit deal is likely to come back to center stage.

However, it remains to be seen if PM may is capable of gathering enough support to get her deal approved by lawmakers before the meeting. Ahead of tomorrow’s parliament meeting investors are on the lookout for macro data updates for short term profit cues. On the release front, the major release for the day is from the US economic calendar which sees the release of US Q4 GDP data, initial jobless claims and pending home sales data. While Brexit progress continues to control overall price action, the US dollar’s strength is likely to dictate short term price action as Brexit scenario continues to remain at standstill. Expected support and resistance for the pair are at 1.3150, 1.3105/1.3095, 1.3080 and 1.3165, 1.3185, 1.3215 handles respectively.

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