GBP/USD Daily Fundamental Forecast – April 28, 2017

It is going to be an interesting weekly close for the GBPUSD pair as it attempts to break through the range highs as of this writing. This break is likely to be crucial as a break of this region is likely to target 1.30 and then further beyond and maybe move as far high as 1.34 in the short and medium term as well. The trend is clearly bullish but it is also well known that the selling is high in this region and that is why we have to see the weekly close to determine the next course of action as far as the pound is concerned.

Pound Moves Higher

The pound received a boost yesterday from reports that said that the people from Scotland did not prefer to have another referendum to decide on their Independence. The Scottish government has been wanting to push through the independence referendum and use it as a tool to ensure that they dont need to exit the eurozone but with this latest opinion poll, the UK seems to have received a boost and a kind of an approval for the Brexit. Though this was just an opinion poll, this was enough for the bulls to latch on to and push the GBPUSD pair higher during the course of the day.

The weekly close will tell the future course of action for the traders. If there is a close above the range highs, then that would give a license for the bulls to push the pair higher while a close below the range high could signal a correction towards the 1.2650 region.

Looking ahead to the rest of the day, we have the Preliminary GDP from the UK and the advance GDP from the US and both these are likely to bring in some volatility in the pair. Watch out for the close of GBPUSD to understand the course of action for next week.