GBP USD Forecast | Daily Technical Analysis for February 7, 2017
GBP USD Technical Forecast Overview
Yesterday Closed 1.2469
Today Open 1.2469
Day’s Range 1.2458 – 1.2487
52 wk Range 1.1450 – 1.5020
1-Year Return – 14.02%
GBP USD Technical Support and Resistance
Possible trading range for today 1.2458 – 1.2487
|Support 1: 1.2435||Resistance 1: 1.2501|
|Support 2: 1.2414||Resistance 2: 1.2522|
|Support 3: 1.2381||Resistance 3: 1.2555|
GBP USD Fundamental Analysis
Like its dear cousin, the euro, the pound was also not in a position to take full advantage of the weakness in the dollar. Last Friday, we saw a weak wage earnings report and this helped to keep the dollar under pressure. Under normal circumstances, this would have meant that currencies across the board would have gained against the dollar but it seems that each currency has its own set of problems to deal with and hence they have not been able to make much of an advance. The GBPUSD has in fact weakened ever since the employment report was released and even during the past 24 hours, it has not been able to get over 1.25.
The pound is under continued pressure as the Brexit process takes its own sweet time to take shape and as the time wears on, the risks and uncertainty continue to tag along and this has been weighing on the pound for the last few months and will continue to weigh on the pound in the medium term as well. This is the reason why we have been saying that any bounce in this pair is likely to be sold into and this is what we have been seeing. Over the last 24 hours, the GBPUSD pair has not been able to make any significant gains and looks weak and we believe that it will continue to trade in this manner in the short term.
Looking ahead to today, we do not have any major news from the UK or the US for today and so expect some more consolidation and ranging with a bearish bias in this pair. We are likely to be looking at 1.24 shortly and if we do get there and break this region then the pair is likely to slide to 1.23. On the upper side, 1.25 would be the region to watch out for.