GBP/USD Daily Fundamental Forecast – July 17, 2017

The GBPUSD pair finally broke free of the ceiling at the 1.3030 region and it now looks poised to go for more. For long, this region had sat on top of the prices and there was not much that the pair could do with some huge amount of selling happening in the region. But we had mentioned in our forecast that the 1.2800 region would act as very good support and thats what we saw on Friday.

GBPUSD Finally Breaks Free

This 1.28 region had seen a lot of buying over the last week and it looked as though the pair was getting ready for the next leg of the bull run, and we had mentioned as much in our forecasts last week. It just needed a boost from somewhere and with the dollar holding steady for much of the week, it needed  a weak CPI and retail sales data, coming in late on Friday, to provide the boost that the pair needed and it shot through 1.3030 and it now trades in the 1.31 region as of this writing, looking good for more.

On the other hand, it has been a very difficult time for the dollar which has been unable to bring in any sort of bullishness, even against one of the weakest currencies, which is the pound. A bunch of weak economic data from the US has made the traders and investors forget the UK election results, weak UK data of late and the Brexit negotiations and has pushed the pair higher and basically almost covered the entire losses over the last month. It is an ominous signal ahead of the Brexit negotiations that are set to begin today. It is likely to be a long and arduous process with a lot of IFs and BUTs and its going to a volatile few weeks for the pound.

Looking ahead to the rest of the day, we do not have any major news from the UK or the US during the course of the day and so we can safely expect the GBPUSD pair to continue its bullishness, though on a lesser scale.