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GBPUSD Continues to Push Higher

Colin First

The GBPUSD pair continues to trade in a strong manner over the last 24 hours as the pair broke through the 1.42 region and continues to move higher. Ever since the pair finally managed to break through the 1.40 resistance region, it has been trading in a pretty buoyant manner for much of the time and there has not been any danger to the bull run as yet.

GBPUSD Through 1.42

There was a brief time when a battle broke out between the bulls and the bears around the 1.40 region but that ended in a failure for the bears which has since helped the bulls to seize control in due course of time. It looks as though the pair would continue onwards and higher despite the fact that the incoming data from the UK has been choppy at best, over the last few weeks. We do not see any major progress in the economic data and this is likely to keep the pressure on the BOE which would want to join the other major central banks in their rate hike cycle but it is likely to lag behind.

GBPUSD Hourly

The Brexit process has been progressing in a smooth manner and that is what has been helping the bulls in holding up the pound and helping it higher. There is less than a year for the process to complete and so far, the deal has been progressing in a strong manner and this is expected to continue in the short term as well. The large drop that we had seen following the vote seems to be a thing of the past for now.

Looking ahead to the rest of the day, we do not have any major news from the UK or the US and we expect the dollar to remain buoyed due to the escalation of the global risks due to the Syrian war and the trade war as well.

This article was originally posted on FX Empire

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