GBP/USD Daily Fundamental Forecast – August 10, 2017

The GBPUSD pair, after having broken through the crucial support region around 1.3030, spent the last 24 hours within a tight 60 pip range as the lack of economic or fundamental drivers forced the pair into a period of consolidation and ranging. The pair continues to look weak and an attempt to break back through the broken support turned resistance was quickly beaten back by a lot of selling yesterday and it trades just below 1.3000 as of this writing.

GBPUSD In Tight Range

There has been no economic data from the UK for this week with all the action and volatility being completed as of last week. The BOE confirmed that there were growth and inflation fears and with the UK being forced to live with the risks and uncertainty surrounding the Brexit process, the traders would need to look upto the economic data coming out of the UK to gauge how well the country is coping up with the Brexit.

With not much of fundamental and economic drivers around, the pair has been floundering over the last few days but the weakness in the GBPUSD pair is clear for everyone to see. We expect the weakness to continue in the short term when the economic data from the UK would come under renewed focus. The UK has been managing well so far, as far as the economic data is concerned but over the last couple of weeks, the data has turned choppy raising fears that the effect of the Brexit is beginning to take effect.

Looking ahead to the rest of the day, we have the manufacturing data from the UK which the bulls would hope to be as strong as possible to give a lift to the floundering pound. We also have the PPI data from the US which should also be watched closely to see if the data from the US continues to recover. We should see much more volatility in the GBPUSD pair today.