GBP/USD Daily Price Forecast – GBP/USD Sticking to the 1.30 RegionThe pair holds on to the 1.30 region as we wait for further developments in the UK surrounding the Brexit process
The GBPUSD pair has been having a tough time keeping the bears at bay as we have been seeing the pair down in the dumps over the past few days. This has got more to do with the fact that the dollar has been strengthening across the board over this period rather than the weakness in the pound. We believe that the pound weakness is still fully yet to settle in as the traders are not yet able to make up their mind on whether which of the 2 options, Brexit or not, is good for the UK economy and the pound.
There is indeed a huge difference that a few weeks can make in the political and the economic circles. Just a few weeks back, the Brexit process had been proceeding in a slow and steady manner and we had also seen that the UK PM May was firmly in control and was calling the shots. But over the next few weeks, we have seen that the calls for the Brexit process to be put on hold and calls for the UK to remain in the Eurozone has grown within the UK region and now we are seeing the UK PM May under pressure and the Brexit process becoming uncertain during this point of time.
We believe that the pound has not seen the full impact of this development as yet and it continues to be driven more by the strength and the weakness of the dollar rather than by what is happening within the UK. This is likely to change in the short and medium term as the picture will become more and more clear in due course of time and then the traders would begin to take sides and it is only then that the impact of the Brexit process, or the lack of it, would begin to show on the pound. Till that time, it is likely that the bulls would try and hold on to the 1.30 region.