GBP/USD Daily Fundamental Forecast – July 14, 2017
We had mentioned in our forecast yesterday that the region around 1.28 would be a good one for the pair to bounce and that the recovery in the GBPUSD pair had begun the day before as it set off higher from the 1.28 region. That recovery continued yesterday as well as the pair was in a consolidation phase with a bullish bias for most of the day yesterday.
GBPUSD Waiting for Direction
There was a lot of volatility on either side of 1.29 in the GBPUSD pair though the pair was trading within a tight range and could not push towards the either side of the range. But it is clear that the bulls continue to have an upper hand at this point of time and the region around 1.28 would be key if the bears want to seize back the control. Yesterday, there was not much fundamental news from the UK and this was one of the reasons for the consolidation.
The dollar bulls would have been hoping for some support in the form of hawkishness in the speech of Yellen but for the second day running, she disappointed them with no specific reference to the economic strength or the timeline for the next hike. This set the dollar on the backfoot and has helped the GBPUSD pair to continue to trade in a strong and steady manner near the highs of the range.The PPI data was largely on expected lines and did not ruffle the markets.
Looking ahead to the rest of the day, we do not have any major news from the UK but we have the important CPI and retail sales data from the US which is likely to bring in a lot of volatility in the markets in the short term. Any strength in this data is likely to push the dollar higher and bring the 1.28 region back into view in the GBPUSD pair.
This article was originally posted on FX Empire