GBP is one of the most volatile currencies. We know that Brexit is a matter of time. People are curious to know what will happen in the market. There is a confusion that whether to go for sell or buy! Today we are going to write this post considering the fundamental and technical view of GBP (Pound).
GBP Fundamental View
During today’s Asia-Pacific session, GBP was weaker across the board as the UK’s bleak economic outlook following last week’s string of disappointing data releases, increasingly dovish BoE outlook and Brexit concerns continued to weigh on sentiment and its fundamental outlook.
As a quick recap, Friday’s Retail Sales report for December missed expectations across the board with Retail Sales Y/Y printing at 0.9% versus consensus of 2.6% and a minimum and prior of 1.0%. The report saw BoE rate cut bets for January 30th rise to around 70%.
To begin the week and add to GBP’s bleak outlook were commented over the weekend from UK Chancellor Javid who urged UK companies to forget about being closely aligned to the EU post-Brexit and adjust to the new reality.
Alongside alarming EU officials, the Telegraph reported the comments pointed to a deepening fault line emerging between the UK and EU over how much Britain must continue to adhere to some EU regulations post-Brexit. Additionally, the Financial Times reported a split away from EU regulations will cost the UK billions and impact consumer choice.
As such, I expect GBP to remain pressured in the session ahead as the UK’s monetary policy outlook and renewed Brexit concerns weigh on GBP sentiment and its fundamental outlook.
GBPUSD Chart Analysis
GBP/USD SELL @1.3000
GBPJPY Chart Analysis
GBP/JPY SELL AREA 144.00