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GBP/USD Daily Fundamental Forecast – September 6, 2017

By:
Colin First
Published: Sep 6, 2017, 03:51 UTC

The pound turned out to be the strongest currency for the day yesterday as it rose through 1.30 and is now hitting at the highs of the range in the 1.3030

GBPUSD Wednesday

The pound turned out to be the strongest currency for the day yesterday as it rose through 1.30 and is now hitting at the highs of the range in the 1.3030 region and threatening to break through, as of this writing. It did seem quite weak for the whole of last week and on Monday as well but the weakness in the dollar and the steadying of the incoming data from the UK has helped the GBPUSD pair to recover.

GBPUSD Rushes Higher

The focus was on the dollar for the most part of the day yesterday as the US markets opened up after the long weekend and there were also a host of speakers from the Fed. The market did want to know what they thought about the US economy and about the timing for the next rate hike and it turned out that they did not think too much about them. They were predominantly dovish in either of the issues and this did not make the investors and traders happy and this led to another round of selling in the dollar.

GBPUSD Hourly
GBPUSD Hourly

This helped the GBPUSD pair to climb through the 1.3000 region and now it is at the crucial resistance region around 1.3030. If it manages to break through this region in a clean manner, then we should be seeing the pair make its way to the 1.3250 region in the short term but for that to happen, the dollar needs to weaken even further.

Looking ahead to the rest of the day, we do not have any major economic news from the UK for today and hence it can be said that the focus will again be on the dollar and whether it can stage a recovery in the short term. We believe that the dollar index is at an important point and it could either drop or bounce from here and it is advisable for the traders to see whether there is a reverse or a breakout in this pair before jumping in.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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