With UK Parliament suspended for the next few weeks, what is going to make GBP/USD move?  Although it is still early in the US trading session, a bullish move in DXY (particularly todays bullish candle), can move GPB/USD lower.  

GBPUSD
 

Source: Tradingview, FOREX.com

But as of the time of this writing, DXY is up 0.37% and GBP/USD is only down 0.17%.

Another obvious factor that tends to move GBP/USD is economic data releases.  Here is economic data released over the last 2 days for the UK:

                                                                Actual (MoM)                    Estimated

Industrial Production (Jul)                           0.1%                                      -0.1%

Manufacturing Production (Jul)                   0.3%                                      0.1%

GDP (Jul)                                                     0.3%                                      0.1%

Trade Balance (Jul)                                     -9.14B                                   -9.60B

Avg hourly Earnings (ex bonus) (Jul)          4.0%                                      3.7%

Claimant Count Change (Aug)                    28.2K                                     29.3K

Unemployment Rate (Jul)                            3.8%                                      3.9%     

Better than expected manufacturing and employment data, across the board.  But again, as of the time of this writing, the current price is 1.2328  vs Monday’s close at 1.2344. Lower than Monday's close

GBPUSD

Source: Tradingview, FOREX.com

With a stronger US Dollar and stronger economic data from the UK, one would expect that GBP/USD would be more volatile.  However, it is only down 16 pips from Monday’s close.  Why?

GBP/USD has primarily been trading on the Brexit theme.  And now, with Parliament closed, the market is waiting for one thing: HEADLINES!  The more headlines we see, the more volatile the pair will act.  Be on the lookout for comments from the UK, EU, and other countries willing to negotiate deals separately with the UK.  Watch for headlines, regarding the Irish border, hard Brexit, soft landing Brexit, and the like. 

Although this sounds very simplistic, Brexit headlines may be the only thing that will move this pair for the next few weeks!  Technicals may not matter once a significant headline is released. But for now, there is horizontal resistance just above at 1.2375.  The pair has tried to break through this area numerous times the past few days and failed to do so.  Trendline support comes in near 1.2190, then at the highs of the hammer candle on September 3rd at 1.2105.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD tension remains elevated ahead of the Fed

EUR/USD is trading above 1.1050, in a narrow range ahead of the all-important Fed decision. Chair Powell is set to cut rates but signal no further stimulus is on the cards.

EUR/USD News

GBP/USD extends its falls to 1.2450 amid weak UK inflation, Brexit impasse

GBP/USD has dropped to around 1.2450 as UK headline CPI missed with 1.7% in August. Brexit negotiations remain stuck according to Chief EU negotiator Barnier. The Fed decision is eyed.

GBP/USD News

USD/JPY holds on to recovery gains above 108.00 ahead of Fed

Not only upbeat trade numbers from Japan but upbeat trade/political headlines also help the USD/JPY pair to remain firm around 108.20 prior to Wednesday’s European session. Focus on FOMC decision.

USD/JPY News

Forex Today: Fed set to trigger high volatility, oil falls, altcoins advance

Tension is mounting ahead of the Federal Reserve decision later today. Economists expect a 25 basis point rate cut amid slowing global growth and investment. 

Read more

Gold seesaws around $1,500 with all eyes on FOMC

With the global traders on a wait and see approach ahead of the key event, Gold offers fewer moves while taking rounds to $1,500 during Wednesday’s Asian session. Also supporting the bulls were positive statistics from the US and the Eurozone.

Gold News

Forex Majors

Cryptocurrencies

Signatures