Yahoo Finance GBP/USD Fundamental Analysis – week of August 21, 2017
The GBPUSD pair had a pretty difficult week despite some strong economic data from the UK and it was more of a choppy trading with a bearish bias in the pair rather than any kind of specific direction in this pair. We do believe that there is not much to be very optimistic about this pair and with the ongoing Brexit process and also with the BOE reluctant to help the pound much, it does look like an uphill battle for the pound in the short and medium term as well.
GBPUSD Remains Weak
The week started slowly for the pair, as was the case in general all across the markets and things began to pick up when the CPI data from the UK came in weaker than expected. The bulls would have expected some positive news on that front as that would have helped the pair to build some momentum in its attempt to break through the important 1.3030 region but with that help not forthcoming from the data, any hope of a fight from the bulls was lost and the pair began to correct lower.
The average earnings index data and the retail sales data from the UK came in stronger than what was expected but that was not enough to lift the pound. The selling in the pair was clear for everyone to see and the pair continued to get weaker during the course of the week even though the dollar was on the backfoot following the FOMC meeting minutes. The pair rolled downwards and there were a couple of attempts to break through the important support region at 1.2860 but so far, the support region has managed to hold on.
In the upcoming week, we do not have much of economic data from any part of the world but we have the Jackson Hole Meeting though the pound and the BOE has little to do with it. We can expect the pair to continue to trade in a weak manner and unless the dollar gets hit really badly in the short term, we may see the GBPUSD pair parachute down towards the 1.27 and 1.26 region in the short term.
This article was originally posted on FX Empire
