GBP/USD Price Forecast – GBP/USD Stable Above 1.32 Handle Supported by Strong Fundamental Data

The British pound continues to push on to the upside supported by positive macro data updates across the week with volatility in favor of GBP amid a holiday thinned market. The Sterling caught some bullish momentum on Wednesday after the UK’s Markit Services PMI came in at 55.1, clearing the expected steady reading at 54.0. The GBP bulls will be looking to keep the good vibes rolling with a scheduled speech by the Bank of England’s (BoE) Governor Mark Carney at 10:00 GMT, though the BoE chief is unlikely to deliver any new developments as he is giving a prepared speech in Newcastle during his regular regional visit to the North East. Meanwhile trading session moving forward will see American market getting active today post US Independence Day celebrations.

GBPUSD Stable

As US market hours begin investors across the globe will focus on US Fed meet and a bounty of macro data scheduled to release for the day such as ADP Non-Farm Employment data, Initial Jobless Claims, Markit Composite & Services PMI, ISM Non-Manufacturing Employment & PMI data and Crude Oil Inventory data. Investors are looking forward to FOMC Minutes with caution to see if US Fed remains positive on last month’s hawkish stance or if the Fed has taken a step back in response to Trump’s “America Frist” approach in recent days that is expected to greatly affect trade relations thereby indirectly American economy. A continued hawkish stance could help increase bid action in favor of US Greenback across a basket of major global currencies while a dovish signal from Fed would see increased volatility in favor of GBP helping push the British pound above resistance level of 1.3270.

Meanwhile reports from Bloomberg indicate that UK Prime Minister Theresa May is outlining a trade compromise plan with the EU in hopes that she can keep her fracturing parliament together, and grease the wheels of Brexit negotiations in Brussels which have stalled. If things turn out as per Theresa May’s plan as cited by anonymous tipper, the new idea will offer the “best of both worlds” from the two previous customs options and allow ardent Brexit backers like Foreign Secretary Boris Johnson and pro-EU ministers such as Chancellor of the Exchequer Philip Hammond to come to an agreement. A positive turn out during tomorrow’s cabinet meeting which discusses Brexit proceedings will help British Sterling reach new high’s.