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GBP/USD Price Forecast – GBP/USD Trades Flat Near Weekly Lows on Holiday Thin Market

Brexit remains the top concern for traders as new issues continue to hamper progress.
Colin First
GBPUSD Thursday
GBPUSD Thursday

The GBP/USD is seeing choppy action in Thursday’s pre-London market session, bouncing between 1.2770 and 1.2790, with thin liquidity on the cards as GBP traders await further developments on Brexit as US markets are on thanksgiving holiday. European-theater market flows will be deciding the Cable’s direction, with a thinned-out economic calendar on the offering for Thursday, though a late-session speech from the Bank of England’s (BOE) Michael Saunders, a voting member of the BOE’s Monetary Policy Committee, will be dropping on markets around 20:55 GMT. As of writing this article, the GBP/USD pair is trading flat at 1.2784 up by 0.05% on the day and has maintained range bound price action for third consecutive session near weekly lows as Brexit deal continues to face problems over Spain’s claim on Gibraltar and unresolved Irish Border issue.

PM May To Visit Brussels For Further Talks Before Official Meet As New Issues Continue Popping Up

Speaking at the Annual South West Economics Dinner, Saunders could drive market reactions with his words as an MPC-voting member, especially with US money absent from Thursday’s US trading session as American institutions observe the US Thanksgiving holiday. Brexit continues to lead front-and-center for Sterling traders, and investors hoping for firmer details from Prime Minister Theresa May’s Wednesday meeting with the European Commission’s Jean-Claude Juncker. After meeting Juncker for one hour and 50 minutes, May announced that she will return to Brussels for last minute talks on Saturday, just a day before EU leaders are due to sign off on the deal which wasn’t on the card before and could provide some volatility for rest of today and tomorrows trading sessions over speculation and headlines which could shed light on what the meeting will be about and what was discussed during yesterday’s meeting.

“We have given direction to our negotiators this evening. The work on those issues will now start immediately,” May told the BBC. “I believe we have been able to give sufficient direction for them to be able to resolve those remaining issues.” If they don’t, there’s a chance EU leaders could cancel the gathering, which would deal a major blow to May’s hopes of concluding the negotiations by the end of November. Britain is due to exit the bloc of 28 countries on March 29, with or without a deal. The EU’s two most powerful countries, Germany and France, are divided over the Sunday summit. While German chancellor Angela Merkel refuses to attend unless the deal is already sealed, French President Emmanuel Macron wants the opportunity to discuss the text himself, rather than leave it to lower-level officials. Expected support and resistance for the pair are at 1.2765, 1.2725, 1.2680 and 1.2810, 1.2845, 1.2890 respectively.

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