GBP/USD Daily Fundamental Forecast
GBPUSD suffered a pounding over the last few hours as the dollar had strengthened across the board. We have been warning in almost all our forecasts, even when the pair was above 1.25, that it was only a matter of time before the pair crashed and that any bounce in the pair should be viewed as an opportunity to go short on this pair and the traders should not even be thinking about going long on this pair and we have been proved right again and again.
GBPUSD Likely to be Most Affected
The underlying strength in the dollar had been simmering beneath for the past few weeks and we felt that it was only a matter of time before it burst through to the surface. And with the pound always being under pressure due to the uncertainty and fears surrounding the Brexit process, the GBPUSD pair seemed likely to be the pair to be most affected when the dollar strength returned.
Looking ahead to the rest of the day, we do not have any major news from the UK while we have the manufacturing PMI data from the US. We expect the repercussions of the Trump announcement to continue for the rest of the day which should keep the GBPUSD pair under pressure. Any intra day bounce is likely to be met with some strong selling.