GBP/USD Daily Fundamental Forecast – November 8, 2017

The GBPUSD weakened during the course of trading yesterday as it ended up being a choppy day as far as the pound was concerned. Though the pound weakened during the first half of the day, it recovered almost the entire loss by the end of the day and trades comfortably above the 1.3150 region as of this writing. The drop and recovery has given a confusing picture as far as the direction of the pound is concerned.

GBPUSD Recovers, Heads Higher

The dollar, on the other hand, has been more or less steady through the course of the last 24 hours. Trump is on a visit to different parts of Asia and with him being there, the twitter has been a good place to be as there have not been too many caustic comments through this period from him. This has helped the dollar to hold steady. Also, the tax reform plan is being given the final touches and going through the different stages and this has helped to support the dollar as well.

The pound has been generally bullish after the fall from the last fall which happened when the BOE hiked rates but gave a grim outlook of the economy. Though the pound fell by 2 cents on that day, it has managed to recover since that day and has managed to gain by over a cent from the price that day. This points to further bullishness in the pound as the fear of the market, that there may not be many more hikes down the line, begins to slowly recede.

Looking ahead to the rest of the day, we do not have any major economic news from the US or the UK during the course of the day and hence we can expect the bullishness to continue during the day. The rise from the GBPUSD pair is likely to be slow and steady but we believe that looking at the price action, we should be heading higher in this pair in the short term.