GBP/USD Daily Fundamental Forecast – January 11, 2017

    9 months agoByColin First

    The pound continued to consolidate and range with no specific direction. The range continues to get tighter and tighter and it is only a matter of time before there is going to be a large breakout. It remains to be seen on which direction the breakout is going to be but if and when it happens, we can safely expect a move for 300-400 pips. We continue to believe that the risk is to the downside on the GBPUSD pair due to a combination of the weakness in the pound and the upcoming strength in the dollar.

    GBPUSD Hourly
    GBPUSD Hourly

    That strength of the dollar is likely to be tested today when Trump addresses his first formal press conference since last July and the market would be eagerly watching this to see if he spells out or gives some hints about some of his campaign topics and what kind of approach he is likely to take with regards to relations with the neighbours of USA and the trade relations with the largest economies of the world, especially China. It would be good for the dollar if he sounds more diplomatic than usual and chooses to take a middle path rather than trying to spew venom. If he does sound mellowed down, then we could see a boost for the dollar which is then likely to place the GBPUSD pair under great pressure. The pressure on the pound hasnt yet eased with the risk and the confusion over the Brexit pressure continuing to hang around it but for now, it is all about the dollar.

    Looking ahead to today, we have the manufacturing production data from the UK and we will be seeing whether the UK is able to continue the trend of good data that we have been seeing from it over the past few months, with no effects of the Brexit process as yet. Any slip in this data would only add to the pressure on the pound. Apart from the crude oil inventories, there is no other major economic news to be released from the US for today.


    SymbolLast PriceChangeChart

    Live Quotes

    Top Promotions
    Top Brokers

    FX Empire - the company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as link result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate.
    FX Empire may receive compensation from the companies featured on the network.

    All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. FX Empire bears no responsibility for any trading losses you might incur as link result of using any data within the FX Empire.