GBP/USD Technical Forecast – March 07, 2017
Most of the instruments spent their time ranging and consolidating yesterday and GBP/USD was no exception. The various currencies have bigger battles ahead of them later on in the week and they seem to be getting ready for it. The bulls and the bears are licking their lips in anticipation and with the early part of this week being the only period when they can take rest and consolidate, they have utilised this opportunity to do exactly that and as a result, we saw the pair caught in a tight range for most of the day yesterday.
There was no fundamental driver or news of any sort to move the GBP/USD pair in either direction and as a result of that, we saw the pair unable to make a move in either direction. The pair was caught between 1.2250 and 1.2300 for most of the day and neither the bulls nor the bears seem to have any control over the pair. But with the uncertainty and fears around the UK and its economy continuing to exist, we believe that the pair will continue to be under pressure. Also, the bears only seem to be too willing to sell off the pound whenever there is a bounce in it and this has placed even more pressure on the pound making it very difficult for it to recover.
Looking ahead to today, we do not have any major news from the UK or the US for the rest of the day. So, we can safely expect some more consolidation for the day as there is again, no specific driver for the prices to move. The dollar traders are awaiting data that is due further down the week while the pound traders do not have any development in the fundamentals to drive its prices and so the GBP/USD pair is caught in a tight range with a bearish bias.