Fundamental Analysis of GBP/USD for August 8, 2017

GBP/USD has been quite bearish recently due to positive high impact economic reports of USD. As of the Brexit effect and political unrest in the economy recently GBP has gained over USD with a steady manner which came to a pause after USD had some positive economic reports published on Friday. Moreover, BOE has failed to provide hopes on Rate Hike, Inflation, and Economic growth which resulted to further weakness of the currency which is expected to continue for coming days as well. Today GBP BRC Retail Sales Monitor report was also published with a decreased figure at 0.9% which previously was at 1.2%. On the other hand, today USD have NFIB Small Business Index report which is expected to remain unchanged at 103.6, JOLTS Job Opening report is expected to show a growth to 5.74M from the previous figure of 5.67M and IBD/TIPP Economic Optimism is also expected to show a bit of a rise to 50.6 from the previous figure of 50.2. To sum up, USD is currently quite hawkish in nature with positive economic reports which is expected to add to the gains of the currency against GBP in the coming days. Though the gain is expected to be shorter in duration as GBP is overall quite stronger in long term basis.

Now let us look at the technical view, the price is currently residing below the resistance level of 1.3050 which is expected to reach 1.2850 in the coming days which is also a trendline support. After the bearish impulsive price action of NFP, USD is currently quite strong in nature and expected to gain more over GBP in the coming days as the price remains below the resistance area of 1.3050 to 1.3130.

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The material has been provided by InstaForex Company - www.instaforex.com