GBP/USD Back Near Its Support

The GBPUSD pair continues to trade in a weak manner as it winds down the week and the month under pressure from the strength of the dollar which has been gaining all across the board. The pair trades just above the 1.40 region as of this writing and this is set to continue into the weekend which is going to be long for traders in many parts of the world.

GBPUSD Near Support

The bulls would be hoping that they would be able to end the week above the strong support in the 1.40 region but that region is under threat as of this writing. The day is expected to be one of low liquidity and volatility and hence, we would not be surprised if there is consolidation and ranging for most of the day within a very tight range. It is indeed going to be a slow day and whichever way the pair closes for the day, we should see that the pair would be closing the week on a weak note considering that it was challenging the highs of its range last week.

That move had come about immediately after the FOMC and the BOE and the implementation of tariffs by the US and this has led to a weakness in the dollar which helped the pound bulls to push through to the range highs. But ever since the week began, we have been seeing the dollar gain in strength in a slow and steady manner and this has seen the pair begin to lose ground and settle near the support region which the bulls would be hoping that it would hold.

Looking ahead to the rest of the day, as we have been mentioning earlier, it is going to be a long weekend for many parts of the world and hence the liquidity is going to be very low and we do not expect too much action during the course of the day.