GBP/USD Daily Fundamental Forecast – March 06, 2017
GBPUSD continues to consolidate and trade within a tight range and has been unable to make any push to the upper side so far. Last week, the pair was one of the worst performing instruments as it crashed through 1.2300 and it continues to trade below that as of this writing and it continues to look weak.
GBPUSD Under Pressure
We have been mentioning in almost all our forecasts for the last few weeks that the GBPUSD pair is likely to trade weakly over the next few months atleast and hence, any bounce in this pair should be considered as an opportunity to go short on this pair. The uncertainty and fears surrounding the UK, the Brexit process and the pound was simply too much for the markets to digest and as a result of that, we have been seeing the pound under pressure over the last few weeks despite all the volatility and the dollar weakness around.
Looking ahead to today, we do not have any major news from the UK for today and so we expect some more consolidation with a bearish momentum for the rest of the day. Any bounce in this pair can be sold off as long as the traders manage to sell it off near a strong resistance region. The GBPUSD pair is expected to continue to be under pressure for the rest of the week as well and the range of news towards the end of the week could bring in a lot of volatility in the pair which could then target 1.2000 if the weakness continues.