GBP/USD Daily Fundamental Forecast – August 22, 2017

GBPUSD continues in its weak consolidation mode as the dollar weakened across the board but that did not seem to have much of an effect on the pair as its brief attempt at a recovery was foiled by a lot of selling at the highs of the range which has once again forced the pair to move back lower into the usual range and this is likely to continue to be the case in the short term.

GBPUSD Still Under Pressure

The pound does not have many drivers to push it in any specific direction in the short term and that is why we expect the pair to continue to consolidate in a weak manner as the lack of any positive news from the UK seems to be weighing on the pound. Though the economic data from the UK has been choppy of late, the lack of support and hawkishness from the ECB seems to be the one which is putting a lot of pressure on the pound and that is the reason why we have been seeing the pair not being able to generate a bullish run.

Even yesterday, we saw the dollar getting weak across the board during the US session and though the GBPUSD pair did try to break through the 1.29 region and make a move higher, it was beaten back and the pair is now trading below 1.29 as of this writing. We believe that the euro might go up in the short term and this might give a temporary boost to the pound this week but it is unlikely to last very long.

Looking ahead to the rest of the day, we do not have any major news from the UK or the US for today and so expect some consolidation and ranging on either side of 1.29 for the rest of the day.