GBP/USD Daily Fundamental Forecast – August 13, 2017

The GBPUSD pair had a difficult week but managed to end the week in a strong manner courtesy the weakness in the dollar. The pound has been struggling for the past week ever since it broke through the crucial 1.3030 region in a clean manner on the back of some solid strength in the dollar. It has tried to break back through this region a few times but it has not been able to so and though it ended the week below this region, the fact that it closed the week above the 1.30 region bodes well for it.

GBPUSD In Important Region

On Friday, all eyes were on the dollar and the CPI data as the market was looking towards this data to see if the recovery in the data from the US continued following the strong NFP data from the previous week. But the CPI data disappointed by coming in at a weaker than expected value of 0.1% and this was enough for the dollar to be sold across the board once again. We had expected this weakness in the dollar to return again pretty soon and that is why we had not advised on selling this pair just yet, last week though the dollar recovered during the first half of the week.

This sell off helped the GBPUSD pair to recover but it was not enough to break through the 1.3030 region. The upcoming week is going to be an interesting one as we have a lot of data from the US and the UK and all these are likely to rock the markets. We continue to believe in the bullish trend in this pair and we believe that the pair would still test the range highs at around the 1.3250 region but for now, the main attention would be whether the bulls would be able to break through the the 1.3030 region.

Looking ahead to the rest of the day, we do not have any major news from the US or the UK for today but we believe that the dollar weakness would continue for the day and the GBPUSD pair would be buoyed and likely to stay strong during the course of the day.