GBP/USD Daily Fundamental Forecast – September 11, 2017
As expected, the GBPUSD pair has continued to trade in a strong manner since the beginning of Friday but it has stopped short of the 1.3250 region so far and that is likely to be the point of interest for the rest of the day today. The pair has been tearing higher since the middle of last week and that has helped it to surmount the hurdles at 1.31 and 1.32 and hurtle higher.
GBPUSD Consolidates at Range Highs
But, as we mentioned in our forecast on Friday, the region around 1.3250 marked the highs of the range and it was likely to face a lot of selling in this region and thats what we have seen during Friday. The pair has since corrected lower and trades below the 1.32 region as of this writing but there has not been any signs of major weakness as yet. It has to be said that there were no major fundamentals driving the pound higher in this latest leg of its bullish move and the move was based more on technicals than anything.
Of course, the weakness in the dollar and the fact that there were no updates or risks generated out of the UK in the form of incoming data or the Brexit talks, did help the pair to move higher but the situation was no different from what it was the previous week. With this latest move, the pair has completed its revisit to the top of the range and it remains to be seen whether it still has the strength to make use of the pressure on the dollar to make a breakout through those range highs.
Looking ahead to the rest of the day, we do not have any major news from the UK or the US and so, we can expect some consolidation with a bearish bias. We have the BOE rate announcement and statement and though we expect the BOE to hold, the market would be watching out for their statement for any kind of dovishness and so we can see some consolidation in the GBPUSD till then.
This article was originally posted on FX Empire
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