GBP/USD Daily Price Forecast – GBP/USD Bounces Off 1.29

The pound bulls continue to fight it out and try to make a stand in the market as the battle ensues between them and the bears over control of the pound. Yesterday, we saw the prices drop towards the 1.29 region before bouncing back later in the day and the prices continue to trade above the 1.30 region as of this writing, though only just so. This region is likely to continue to be key for the battle between the bulls and the bears as the impact of the Brexit process and the uncertainty surrounding it, continues to hit home in a slow and steady manner.

GBPUSD Bounces Off Support

The political uncertainty over the Brexit process and the wrangling around the political circles and with the government of UK PM May seems to have started to have an impact on the pound. Yesterday, the main opposition to May within the party, Boris Johnson, seemed to have a wavering stand in terms of his views over the Brexit process which was in opposition to his strong view, in initial days, that the Brexit process should be reverted back and that the UK should stay back in Europe. This kind of wavering helped the bulls.

Also, this helped the Euro also to pick up some bullish momentum and this in turn helped the pound to pick up some bullish momentum as well and push higher in a slow and steady manner towards the end of yesterday and the beginning of today as well. This is likely to keep the pair buoyant over the short term and the more that the opposition to May and the Brexit process begins to waver, the more bullish the pound would be and we can see it moving higher in due course of time. The expected weakness and the tapering of the bullishness in the dollar is also expected to add some more momentum to the bullish leg and the traders would then hope to use that as the launchpad for the pound to move higher in due course of time.