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The GBPUSD pair has been taking a bit of a hit over the last few days as the confusion and the uncertainty over the Brexit process continues to haunt the markets at this point of time. There has been no clarity from the government on how all this is going to pan out over the next few months and the clock continues to tick by making it very difficult for the leaders on either side to find a way out of the mess. The situation did seem very much under control a few weeks back with the Brexit process going on smoothly and the leaders on either side agreeing for most of the terms.
GBPUSD Continues to Trade Strongly
But the situation became worse as the leaders began to discuss on the more difficult points and this brought forth a lot of confusion and this affected the talks to a great extent. At the same time, the leaders on the UK side found this as an opportunity to pounce on the existing office of May as the PM and this has only added to the confusion in the short and the medium term as well. Now, no one is very sure about how all this is going to pan out in due course of time and this is only going to make things worse.
But it is to be the credit of the pound and the bulls behind it that it has managed to hold the 1.30 region so far despite the strength in the dollar, that we have been seeing in the markets over the last few weeks and despite all the uncertainty that continues to surround the pound at this point of time. No one seems to be able to make up their mind on which way, Brexit or not, is good for the UK in the long run and this has helped the pound bulls to make a stand around the 1.30 region and hold up the pound for the medium term.
This article was originally posted on FX Empire