GBP/USD Daily Fundamental Forecast – March 26, 2018
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The GBPUSD pair has been trading near the highs of its range and it has got some further boost as of this morning as well as it trades up for the day as of this writing. This momentum is likely to continue in the short term as the dollar is clearly on the backfoot due to the various events and reports that have added to the geopolitical tensions.
GBPUSD Has Bullish Momentum
It is a bit of an irony that the risk and the uncertainty comes from the US but still the market is unable to sell off the dollar totally due to the fact that it is considered as a safe haven to invest in times of high risk and uncertainty. In any case, the pound is expected to stay strong and continued its bullish momentum in the coming days as the pound has been well supported by the positive momentum that has been generated in the pair due to the smooth progress of the Brexit deal.
So, the weakness of the dollar and the strength of tthe pound have been both responsible for the pair to continue higher and though the pair faced a slight hiccup around the 1.40 region when the BOE did not sound as hawkish as the markett had expected, enough momentum had been built up by then and there was no chance for a reversal at all. We had mentioned this in many of our forecasts where we said that a breakout would be fast and strong and would be there to stay for long and thats what we are seeing now.
Now the pair is near the highs of its range and like the euro, it is likely to see a bit of a struggle here as the bulls do not have so much momentum to carry on the pair at this point of time. So we are likely to see some consolidation and ranging in this price range as the market awaits more fundamentals. Also, we are heading towards the end of the month and the pound is usually swayed due to the month end flows and hence there would not be any lack of volatility in this pair in the coming week.
This article was originally posted on FX Empire