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GBP/USD Daily Fundamental Forecast – February 22, 2017

By:
Colin First
Updated: Feb 22, 2017, 03:29 UTC

The GBPUSD pair has managed to do extremely well over the last 24 hours considering the fact that the dollar has been strengthening almost all across the

GBP/USD Daily Fundamental Forecast – February 22, 2017

The GBPUSD pair has managed to do extremely well over the last 24 hours considering the fact that the dollar has been strengthening almost all across the board during the same time period. We have been mentioning in our last few forecasts that the pair has been one of the most resilient pairs around with the pair bouncing strongly when there is some dollar weakness around and not falling by too much when the dollar is strong and this is what we have been seeing over the last couple of days as well.

GBPUSD Continues to Range

But it should be noted that the pair has continued to trade within a larger range of 400-500 pips and the pair has been bouncing back and forth within this range. With the Brexit process slowly beginning to take shape and with Article 50 about to be invoked soon, we might see some additional volatility in the pair in the coming weeks but it remains to be seen whether that would be enough to push the pair beyond its ranges.

GBPUSD Hourly
GBPUSD Hourly

The pair has been pushing past 1.25 as of this writing and looks strong but as we have been mentioning, we believe that any bounces are likely to be met with some strong selling down the line, especially with the risks and the uncertainty of Brexit still looming ahead. So expect the GBPUSD pair to continue to trade within the larger range atleast for the short term.

Looking ahead to today, we have the second estimate of the GDP which will give us a glimpse of how the UK economy is doing. It has been generally doing well and so the GD estimate should also come out pretty decent. Late into the US session, we have the FOMC meeting minutes which will be key for the short term trend of the GBPUSD pair. The market expects the minutes to be very hawkish and indicate some quick rate hikes and if this expectation is fulfilled, then the pair should come back down towards 1.24.

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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