The GBPUSD pair went higher on Friday and the momentum continues as of today as well, as the uncertainty and the confusion over the Brexit process seems to be getting better with time. There were a few fundamental changes that has happened over the past few days and this has helped to ease some pressure on the pound and it now trades above the 1.30 in a comfortable manner and it appears as though this would continue to be the trend over the short and medium term as well.
The pound had been under pressure over the past few weeks due to the strength of the dollar and also due to the fact that the pound itself was struggling due to the uncertainty and the confusion around the Brexit process. We have been seeing that the pound bulls have been able to hold on to the support region around 1.30 and so far, they have managed the situation very well. Now, it is probably getting to the time when they are likely to make full use of the bullish situation that might arise as we get closer to the end of the Brexit process and more clarity begins to emerge in due course of time.
Looking ahead to the rest of the day, we believe that the action in the markets would be muted for much of the day as it is a holiday in the US as well as in Canada. So, we can safely expect some consolidation and ranging to take place in the pair over the next 24 hours with the region around 1.30 acting as good support. We will have to wait and see how the price action pans out in the coming days so that we can then decide which way the pull and the push is going to be and then the traders can decide which way they want to take the trade.
This article was originally posted on FX Empire
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