GBP/USD Daily Fundamental Forecast – July 25, 2017

The GBPUSD pair has consolidated and ranged over the past 24 hours but so far, it looks to be well supported. This could imply that the pair is getting ready to make a move upwards as we are seeing some strong support in the 1.30 region but with the month end looming ahead and with the currency flows expected to be different for the end of the month, we are likely to see some choppy trading which should keep the traders on their toes.

GBPUSD Consolidating Eyeing Upside

Yesterday, we saw the pair push through the 1.30 region and it managed to stay above that region for most of the day. With it being the first day of the week, the volatility and the liquidity were pretty much low for most of the day and hence there was not much action. The pair did look to push through 1.3050 during the course of the day but was met with some strong selling which has since pushed the pair back towards the 1.30 but with some strong support there, we believe that it is only a matter of time before the pair leaves for its next bullish leg which should carry it towards 1.31.

The risks and the uncertainties surrounding the Brexit process continue to dominate the pound and the markets in general and that is one of the reasons why the GBPUSD pair has not been able to fully break through its shackles. The BOE has been trying its best to support the pound through its statements and minutes which have raised the possibility of a rate hike in the months to come but over the last week, the normally strong incoming economic data from the UK has been choppy with both good and bad data coming in mixed. This has also weighed on the pound and kept it pressured.

Looking ahead to the rest of the day, we do not have any major news from the UK but we expect some month end flows to happen during the course of the day which should keep the GBPUSD pair buoyed.