Yahoo Finance GBP/USD Daily Fundamental Forecast – March 16, 2018
The pair continues to find the region of 1.40 a tough nut to crack and with the region around 1.38 providing some strong support as well, we are seeing some solida consolidation and ranging since the beginning of the week and there does not seem to be any chance of a breakout at this point of time.
GBPUSD Under Pressure
The GBPUSD pair has been driven by the strength and the weakness of the dollar but even in those cases, we are seeing that the pair has been able to maintain its range and this shows that the traders are reluctant to push the pair in either direction too much at this point of time. There are yet to commit fully in either direction as the political and economic situation continues to be fluid. Though the Brexit process has been progressing smoothly at this time, the tensions between Russia and the UK are at the peak with the controversy over the killing of a spy.
This has led to an increase in risk and uncertainty and this is adding pressure to the pound. Also, we are seeing the pair under pressure with the BOE and the FOMC meetings lined up for next week. With the Fed expected to hike rates for the first time this year and with the BOE also looking to be as hawkish as it is possible for them, considering the current situation, it is going to be an interesting week ahead and the traders and the investors would not want to commit themselves in either direction so close to such important meetings.
Looking ahead to the rest of the day, we do not have any news from the US or the UK and so expect some more consolidation and ranging in the 1.39 region during the course of the day as the market awaits the developments in the coming week which should determine the short term direction.
This article was originally posted on FX Empire
