GBP/USD Daily Fundamental Forecast – June 26, 2017

The GBPUSD pair continues to trade within a range of 300 pips, something that it has been doing ever since the elections in the UK threw up some surprising results. Though the pair has been trading between 1.25 and 1.28 for most of the time during this period, the volatility within this range has been pretty high and this has managed to keep the traders on their toes during this period and has also made it one of the most active pairs during this time.

GBPUSD Likely to Remain Under Pressure

There has not been much action as of this morning which is something that is expected on the morning of a Monday on the last week of the month. The markets in Singapore are closed and that is also one of the reasons why the liquidity and the volatility has been quite less during this time. But on Friday, we saw the GBPUSD pair rise from around the 1.2680 region and it now trades above 1.2750 as of this writing on sustained dollar weakness which has been brought about by some weak data from the US.

On the other hand, the UK has to grapple with its own set of uncertainties and risks as its leaders head towards the Brexit negotiations with the Euro leaders. This is expected to be a tough phase for all the leaders involved in the process and especially so for the UK PM May who is already under fire domestically for having failed to build on the majority that she had in the outgoing Parliament. All eyes will be on her to see how much she can extract out of this process and this is going to keep the pressure on the pound in the short and medium term.

Looking ahead to the rest of the day, we do not have any major news from the UK or the US and hence expect some consolidation and ranging with some month end flows kicking in over the next few days.