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GBP/USD Daily Fundamental Forecast – December 1, 2017

By:
Colin First
Published: Dec 1, 2017, 03:45 UTC

The pound continues to trade in a strong manner over the last 24 hours despite there being no specific developments fundamentally or economically in the

GBPUSD Friday

The pound continues to trade in a strong manner over the last 24 hours despite there being no specific developments fundamentally or economically in the UK. The Brexit talks and the process continue to take shape but the fact that we are getting closer to a deal is probably pushing the pound higher and keeping it buoyant during the last few days and this is set to continue in the short term.

GBPUSD Continues To Remain Strong

There has been some significant progress in the Brexit talks, if reports are to be believed, and it is likely that a deal might be announced in a week or two. So, from a situation where it was said that the UK might walk out of the talks with no deal, we are now in a situation where we could have a happy ending as far as the deal is concerned. We are now seeing the possibility of a deal that is to the liking of both sides and this has been helping to keep the pound bulls happy.

GBPUSD Hourly
GBPUSD Hourly

The market does not know the details of the deal as yet with various rumors being floated around but the fact that there is light at the end of the tunnel seems to be enough for the pound bulls to continue to buy the pound. This has helped the pound to move above the 1.35 region for the first time in 4 months and it trades comfortably above that, as of this writing. The pound was also easily the strongest currency in the market yesterday.

Looking ahead to the rest of the day, we do not have any major news from the US but we have the manufacturing PMI data from the UK later during the London session. If this comes out stronger than expected, then we can expect another round of the bullish run in the pound.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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