GBP USD Forecast | Daily Technical Analysis for February 8, 2017
GBP USD Technical Forecast Overview
Yesterday Closed 1.2508
Today Open 1.2508
Day’s Range 1.2478 – 1.2513
52 wk Range 1.1450 – 1.5020
1-Year Return – 13.44%
GBP USD Technical Support and Resistance
Possible trading range for today 1.2478 – 1.2513
|Support 1: 1.2389||Resistance 1: 1.2545|
|Support 2: 1.2342||Resistance 2: 1.2592|
|Support 3: 1.2264||Resistance 3: 1.2670|
GBP USD Fundamental Analysis
The GBP USD pair, like many other pairs in the market, seems to be pretty directionless over the past couple of days. On the one hand, we have the pound gaining in strength for some time raising hopes of a beginning of a trend and recovery of the pound but after some time, we find that the dollar begins to gain in strength and the pair falls down making trading difficult in this pair. Of course, there is nice 2 way action which will keep the day traders happy and interested but it is indeed a terrible time for long term traders who are likely to find it difficult to pick a specific direction in this kind of a directionless market.
Over the last 24 hours or so, we have seen the GBP USD pair fall all the way down by around 140 pips and then recover the entire fall as well. There have been no dramatic changes in the fundamentals to warrant such moves either way but this is what happens when both the currencies involved in a pair are quite weak and they find it difficult to make a move and stick it. That is why we have been seeing this pair up and down for the past couple of days as the pair consolidates below 1.25. Now we find this pair back up near 1.25 and we can expect some consolidation around this figure for quite some time with the absence of any major fundamental news in either the UK or the US.
We do not have any major news from the UK or the US during the course of the day and so we expect some more consolidation on either side of 1.25 during the course of the day with a bearish bias in this pair. Traders are advised to trade carefully as usual.