GBP/USD Looking Towards 1.33

The pair is also slowly beginning to buckle under the pressure of the dollar strength that we have been seeing all across the markets over the last 2 weeks. The GBPUSD pair had been holding on to the 1.35 region over the last few weeks despite the weakness in the dollar and it looked as though the bulls would be able to survive after all.

GBPUSD Below 1.35

The dollar has been able to gain ground in the market due to the increasing anticipation over the rate hikes from the Fed in the coming months. This is not a surprise as the last piece of data from the US has been over the expectations and this has helped to stop the trend of weak and choppy data from the US that we have been seeing over the past couple of months. This has added to the dollar strength and though the bulls in the pound managed to hold out for a week or so, they couldn’t hold on towards the end of last week.

We have now seen the prices slip below the 1.35 region to close the last week and though the follow up action might be a bit limited today due to the holiday in several of the global markets, we are likely to see the bears being in control of the pair going forward. This is only going to push the pair down even further in the coming days and we should see the pair heading towards the 1.33 region during this period.

Looking ahead to the rest of the day, as said before, much action cannot be expected in the markets as it is a holiday in a large part of the Eurozone and Canada as well and this is expected to lead to consolidation and ranging for much of the day. So traders could probably afford to take a break for now.