The GBPUSD pair rose strongly through the 1.43 region over the course of the last 24 hours and it appears as though the pair is set to continue higher. The credit has to be given to the pound and the bulls backing it who have been fighting the battle for control tooth and nail over the last few weeks.
GBPUSD Looks Higher
Even when the rate hikes came in from the Fed in March,even when the incoming data from the UK missed expectations, the bulls have been fighting hard and they have been helped by the BOE which continues to be hawkish about the UK economy though the data has not brought that belief in yet. The pound has turned out to be a fighter and has managed to push higher despite the many uncertainties and the risks surrounding the dollar and the pound.
This has helped it to push through the 1.40 region and recover almost all of its losses since the Brexit process began. As the process is about to get done and dusted within a year, we are yet to see too much of an impact from the Brexit on the UK economy and this is probably one of the reasons why the investors believe that the UK would continue to do well in the long term and the value of the pound is indeed reflective of that. The pair is set to move even higher in the coming days though the going could get tougher during this period as more and more traders would begin to take profits close to the range highs and would wait for a correction to load again.
Looking ahead to the rest of the day, we do not have any major economic news or data from the US but we have the average earnings index from the UK which is likely to bring in a bit of volatility.
This article was originally posted on FX Empire