GBP/USD Price Forecast – Sterling To Continue Downside Price Action on Brexit Woes`

The GBPUSD pair yesterday steady downside price action on US Dollar’s strength and bearish pressure stemming from Brexit Woes. There are multiple options to move forward but the deadline is too short given the indecisive nature of UK lawmakers. Citizens may soon come to regret lawmakers decision to take control of Brexit away from PM May if the current scenario extends further. If PM May’s Brexit proposal is rejected today, the UK has less than a month for Brexit unless they participate in EU elections. Concerns of the no-deal exit scenario continue to rise despite lawmakers agreeing to avoid such an outcome as no solid progress has been made so far despite a change in control dynamics. This factor along with US Dollar gaining strength on the rebound in US T.Yields helped US dollar push the pair on steady downside price action.

UK GDP Data Eyed For Short Term Directional Cues

But dollar bulls faced strong bearish influence post-release of disappointing US macro data updates yesterday evening. This resulted in Dollar losing its drive to create a bearish price rally. However, Sterling which suffered fromBrexit woes saw slow and steady downside price action resulting in the pair closing well below 1.3100 handle at end of trading session. Caution ahead of today’s UK parliament session as investors await updates from today’s meeting has resulted in the pair seeing consolidative price action above 1.3000 handle during Asian market hours. Sterling continues to face bearish influence from multiple fronts such as Brexit and declining UK government bond yield – a clear sign of recession in the UK economy.

As of writing this article, GBPUSD pair is trading at 1.3027 down by 0.12% on the day. Investors await UK parliament meeting updates as today’s outcome will decide the date for Brexit deadline as per conditions stated by EU. Aside from the parliament meeting, investors focus is on macro data updates for short term profit opportunities. Both UK and US calendar are highly active today with multiple high impact macro data updates scheduled to release today. UK calendar will see the release of Q7 GDP & Business investment data while the US calendar will see the release of Core PCE Price Index data, PCE deflator data, Personal spending data, Chicago PMI and New home sales data. Regardless of the outcome in macro data front, the path with least resistance in immediate and near future trading session are to the downside unless UK parliament approves UK PM May’s deal or comes to an agreement on solid decision to move forward which will facilitate longer Brexit deadline extension.

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