GBP Forecast: Brexit Breakthrough Needed for Bullish Breakout

GBPUSD

Fundamental Forecast for GBP: Neutral

GBPUSD Analysis and Talking Points:

  • GBP Bulls Await Brexit Breakthrough
  • Plethora of UK Data Likely to Take a Backseat

See our Q4 GBP forecast to learn what will drive the GBP through the quarter.

GBP Bulls Await Brexit Breakthrough

It will be another critical week for UK politics as Brexit negotiations persist with UK markets hoping for a breakthrough. Rumours have continued to drive price action in the Pound, many of which have been conflicting and thus seen GBP trade in choppy fashion. While there has seemingly been progress made, the key issue continues to centre around the Irish border, which has yet to have a workable solution. However, there is rising hope that a deal could be announced soon as implied by option traders with 1-month risk reversals showing a decline in premium for GBP puts (downside protection).

Plethora of UK Data Likely to Take a Backseat

On Friday, the ONS showed UK growth for Q3 rose at its fastest pace since Q4 2016 at 0.6%, which was also in line with the Bank of England’s forecast. However, this

Article source: https://www.dailyfx.com/forex/fundamental/forecast/weekly/gbp/2018/11/09/Brexit-Breakthrough-Needed-for-Bullish-Breakout.html