The GBPUSD pair continued to trade in a weak manner and there was another attempt to break through the lows of the range at around the 1.2860 region but once again, the pair has managed to survive but as the number of attacks increase, it remains to be seen how long the pair would be able to hold on before it cracks down and the pound crashes through.
GBPUSD Still Within Range
Yesterday, we had a lot of choppy trading in many of the major pairs as the dollar was pushed this way and that ever since the release of the FOMC meeting minutes. The minutes were slightly dovish and this weakened the dollar and led to a round of dollar selling immediately after the release of the minutes. But yesterday morning, through the first half of the day, we saw the dollar recover its strength which helped it to reverse the entire move that had happened after the release of the minutes and the pair was back at its lows, threatening to break through.
But later in the day, we had some rumors of some Trump staff resigning and though this turned out to be false, it placed the dollar on the backfoot. There was also an increase in the global risk sentiment with the Spanish terrorist attack and this also put the dollar under even more further pressure. This helped the GBPUSD pair to recover a bit but with the pair continuing to trade near the lows of the range, despite some strong retail sales data from the UK, there does not seem much hope left for the pound bulls and it is likely to continue to trade in a weak manner.
Looking ahead to the rest of the day, we do not have any major news from the UK or the US for the rest of the day and so we can expect some consolidation today but with the dollar weakness being the theme across the markets, we can expect the GBPUSD pair to be buoyant in its consolidative phase in the short term.
This article was originally posted on FX Empire
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