Yahoo Finance GBP/USD Price Forecast – Pound Well Supported for Now
The GBPUSD pair has been under pressure over the last few hours and it is expected that the pressure would only increase as the European session gets underway in due course of time. The markets have been in a quandary over the last few days with the euro getting hit left and right. The pound has largely survived the impact and as we had pointed out earlier, it seems smoother than most of the other pairs.
GBPUSD Under Pressure
The pound has been able to escape the effects of the dollar strength and the euro weakness due to the fact that the UK has been distancing itself from the Eurozone as part of its Brexit process. We are also seeing that the economy of the UK has been steady over the last few months and this has helped the incoming data to get better. With the economy being normal, it would help the BOE to be hawkish in the coming months and they may also think of hiking rates over the coming months which should help the pound.
Also, technically as well, we are seeing some strong buying in the pound around the 1.32 region and with the round figure of 1.30 also just below, we believe that the prices of the pound would be well supported. This is likely to keep the pound within control and prevent it from falling too far and this should be a huge plus for the bulls in the short and medium term. They are likely for the global risk situation to stabilise before they try and buy the pound which should then push the pound back towards the 1.35 region.
Looking ahead to the rest of the day, we do not have any major fundamental news from either the UK or the US but the global risk off sentiment is likely to keep the pound under pressure and the traders would be well advised to wait for the dust to settle.
This article was originally posted on FX Empire
