GBP/USD Daily Fundamental Forecast – September 22, 2017

The pound seems to be well on target to reverse the entire move down that was seen in the GBPUSD pair following the FOMC announcement. It did appear that the dollar was on the path to the recovery after the hawkish announcement but so far, we have seen a good bounce in most of the pairs that suffered against the dollar and it looks as though the dollar would again be on the backfoot in the short term.

GBPUSD Gets a Boost from May

The pound had a very bullish and volatile day yesterday. It has been outperforming most of the market over the last couple of weeks as the fundamentals and the technicals seem to have aligned  for the pair. We have the Brexit process continuing on track and we have also seen the bulls push the pound through certain important technical levels which has increased the confidence of the buyers.

Even yesterday, we saw the UK PM May making it clear that the UK may be inclined to pay 20 billion euros during the course of the Brexit process if the UK is able to get full market access. This should enthuse the markets a great deal as it opens up the possibility of free access which is what the UK so dearly desires. This should certainly be a boost to the UK economy if it happens so and this helped to keep the pound well bid during the course of the day yesterday. This also shows that the Brexit process is right on track and proceeding in a smooth manner with the UK government making the right moves and this has also helped to keep the pound strong.

Looking ahead to the rest of the day, we have the UK PM May making a speech during the London session where she would be expected to touch upon the Brexit process once again and this should keep the GBPUSD pair volatile and bullish as well, in the short term. We do not have any other news from the UK or the US for today.