GBP/USD Daily Price Forecast – Pound Caught Between 2 MindsThe pound has managed to hold on to the 1.30 region despite some weakness following some roadblocks in the Brexit process
The GBPUSD pair began the day on a weak note but the bears have not been able to make much of a breakthrough beyond that and the pair has since risen on some sustained buying and also due to a weakening dollar. The weekend saw some reports that the Brexit process has once again hit some roadblock in the talks between the UK and the Euro leaders and this has been an ongoing saga that has been weighing on the pound. Though the leaders have been trying their best to brush off the concerns and have been trying to project that all is well with the Brexit process, doubts still remain.
Pound Under Pressure
This led the pound lower during early morning trading today but the pair has once again bounced off the 1.30 region as the UK leaders have come to the rescue with many promising that things are on track. The market is not yet ready to believe that and we believe that the dollar weakness at this time is what is saving the pound. The dollar has been weak as doubts begin to rise over their current deficit and the pressure that this is going to have over the borrowing costs over the medium and long term.
This has forced the dollar to be on the backfoot over the last few days and this is probably one of the main reasons why the pound has been able to hold on to the 1.30 region as the dollar strength wanes. Looking ahead to the rest of the day, the traders would be having their ears open to any kind of statements and developments surrounding the Brexit process and they would also be looking forward to the retail sales data from the US to look for further signs of weakness in the US economy and the dollar as well.