GBP/USD Price Forecast – GBP/USD to Range Bound on Lack Of Bullish Influence

GBPUSD pair continues to hold steady in positive territory having opened positive for the week. Weak US dollar in broad market is one of the major reasons British Pound has managed to trade positively in the broad market. US Greenback suffered in the broad market owing to dovish comments from Fed members during their speech last Friday and US President Donald Trump’s declaration of national emergency for diverting funds to his border wall project. As Greenback suffers from repercussions of US President Donald Trump’s action, the Forex market is enjoying a break from Dollar strength inspired price rally. The pair has successfully held steady above 1.29 handle for third consecutive trading session today.

Sino-U.S. Trade Talk Optimism Helped USD Regain Strength

However, the price action has been range bound and British Pound is slowly losing ground against US Dollar today. Despite fundamental influence surrounding US Greenback taking the dovish tone, USD is seeing some strength in the broad market today as investors express optimism over Sino-U.S. trade talk which is set to begin in Washington, U.S.A. later today. Further, British Pound is also suffering bearish influence in the broad market owing to Brexit uncertainties as the country heads towards deadline with high probability for the no-deal exit. This has resulted in the pair failing to capitalize on the dollar’s weakness and establishing a positive price run. As of writing this article, GBPUSD pair is trading at 1.2927 up by 0.05% on the day.

Moving forward, investors await UK macro data updates for meaningful trading opportunities. The pair is expected to continue rangebound price action for rest of the day and in immediate future as USD’s momentum dictates short term directional cues despite Brexit headlines having greater sway in overall price action. On the release front, UK calendar sees the release of Average earnings index + bonus data, Employment chance and unemployment rate update and Claimant Count Change update which are forecast to see positive price action and help GBP sustain its rally above 1.29 handle for rest of today’s trading session. US Calendar is silent for the day aside from a speech by FOMC member Mester but the same is unlikely to have any impact on price action. Expected support and resistance for the pair are at 1.2855, 1.2800 and 1.2940, 1.2975 respectively.

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This article was originally posted on FX Empire

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