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After a week of mixed results and macroeconomic data, the GBPUSD closed last week on an accommodating note, but a quick look at the daily chart shows the pair closed on a positive note on Friday. Despite disappointing macroeconomic results due to worse than expected UK inflation figures, influenced by Brexit uncertainties and the defeat of British Prime Minister Theresa May in the House of Commons last week, the fundamentals of GBP has been maintained, the fall of the US dollar has been disappointing and political debates in the US have helped the pair to gain positive price action and remain stable above 1.29.
Antics of US President Trump puts the USD on the way to the bear
The pair continued its positive price action on Friday and remained steady above 1.2910 during Asian market hours. US President Donald Trump, in an unexpected move, declared the state of national emergency to bypbad congressional orders and divert funds to his initiative to build a border wall between the United States and Mexico. This has led to a decline in the greenback in the broader market. The US market is closed for the day due to the celebration of the birthday of the former President Washington, which leaves the price action at the mercy of the Brexit titles. At the time of writing this article, the GBPUSD is trading at 1.2914, up 0.19% on the day.
Given the obvious lack of up-to-date macroeconomic data from both sides and the widespread weakness of the US Greenback, the pound sterling should be trading positively for the rest of the day. At the present time, the focus is primarily on UK employment and earnings reports, which are expected to be released tomorrow at London market hours, which should provide guidance. . Prior to this update, the pair is expected to move into a bound range with a positive bias biased by Brexit stocks. From a technical point of view, the pair is expected to evolve positively in the short run, with prices well above 20, 50 and 100 MA in the daily hourly chart and the RSI and Stochastic momentum indicators are close to the overbought in hourly and daily charts supporting a bullish influence on the price evolution of the pair.
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