GBPUSD Price Forecast – British Pound To Trade With Positive Bias On US Greenback’s Weakness

GBPUSD pair started the week on positive note supported by risk on trading environment which is highly prevalent across all major global markets today and as of writing this article, the pair is trading at 1.2745 up by 0.15% on the day. However GBPUSD continues to remain the only pair among greenback denominated major global currency pair which has a slightly different price dynamics when compared to others. This is primarily because investors of British Pound are focused on Brexit proceedings while others focus on headlines from both sides of pair. With Brexit deadline nearing on each passing day, Brexit proceedings have higher impact on the pair’s price action compared to greenback related headlines. The week ahead will see UK parliament consider Prime Minister Theresa May’s Brexit deal which was unanimously approved by EU last month.

Parliament Discussion on Brexit Deal Approval to Begin Today

The deal was pulled out of Parliamentary approval vote by PM May on last day of deliberations as the outcome seemed highly unfavorable, post which PM May has indulged in intentional sabotage of Brexit proceedings in UK in hopes that Nay-Sayers could be forced into her boat for approval of deal. There are rumors which suggest possibility of PM May pulling out her deal’s approval in parliament once again owing to scenario remaining unfavorable till data. Meanwhile opposition party dissatisfied with PM May’s antics has called for a No-Confidence vote on her which is also set to occur this month. Headlines indicate that UK lawmakers plan to reject current deal and request EU for extension on Brexit deadlines while EU has clearly stated that there isn’t going to be a better deal which indicates a high possibility of no-deal exit scenario.

UK’s Parliament is set to begin its 5-day deliberation of Brexit deal approval today which is expected to bring in a flood of brexit related headline making it main focus of market. However GBPUSD pair continues to trade positive as investor risk appetite has been stoked following Fed Chair Jerome Powell’s comments last week which hinted at possible pause in Fed Rate hike plans depending on macro data outcome resulting in broad based Greenback’s weakness and bullish rally in equity markets. This coupled with investors’ hopes of solid progress in Brexit front this week is supporting Pound bulls since trading session opened for the day. With no major macro data release from UK in today’s calendar brexit headlines will remain main driving force behind the pair’s price action while US ISM manufacturing PMI & factory orders data scheduled to release later today will provide short term profit opportunity for traders.