GBP/USD Price Forecast – British Pound Gets Uptrend Boost on Geo-Political Proceedings

The GBPUSD pair saw a gap up move on early Asian market hours as European commission came to deal of migration issue. This deal helped Euro gain an upper hand against US Greenback which along with Sino-U.S Trade war concerns caused US dollar to take a downtrend movement against major global currencies. Mixed macro data outcome with major releases scheduled yesterday turning dovish also helped cap US dollar’s movement which resulted in GBP seeing a gap up move as trading session began for the day. As United Kingdom is still attached to Euro zone, any major geo-political decision that pushes the common currency forward will also affect British Pound in positive manner as Brexit proceedings currently remain at a standstill.

GBPUSD Rebounds

This week has seen the Sterling shuffle steadily lower against the Greenback as Brexit concerns continue to weigh on investor sentiment in the UK. The Bank of England (BoE) also released their latest Financial Stability Report (FSR) this week, and the FSR’s focus on potential Brexit concerns kept the GBP on the bearish side. However latest movements in European political scenario has provided British sterling a much needed kick to end the weeklong bearish streak. UK GDP figures due today are a mid-tier affair, and risk appetite will still be the main driver for Friday.

Currently the GBP/USD pair is trying to clear some ground above the 1.3100 key level ahead of Friday’s European market session. As of writing this article, the pair is trading at 1.3117 handle with 0.30% increase in value. European session will bring GDP figures for the UK, dropping at 08:30 GMT and the YoY GDP for the first quarter is expected to hold steady at 1.2%. Mortgage Approvals will also be dropping at the same time forecast at 62.2 thousand with the previous reading sitting at 62.45 thousand. US market hours will see the US Consumption Expenditure price index, due at 12:30 GMT and expected to tick up slightly from 1.8% to 1.9%.  Positive outcome in US macro data could help US Greenback resume week long bullish streak against broader market which could push the GBPUSD pair back below 1.30 handle as trading session closes for the week.