The pound also finished the week pretty strongly against the dollar as the dollar weakened all across the board due to the dovish FOMC meeting minutes. This is set to continue in the short term as the pound continues to grow in strength and the following week is likely to see the pair go through the 1.34 region and move towards the 1.35 region which is likely to see a battle between the bears and the bulls in this period.

GBPUSD Moves Through 1.33

The week began slowly for the pound as the market prepared itself for more important news later in the week. The pound was buoyed by the happenings in Germany where the troubles faced by Merkel was likely to keep the position of the Eurozone leaders in their talks with the leaders of the UK and this worked to the advantage of the pound. Later on in the week, we saw the budget announcement which gave a positive and hawkish forecast to the economy which further boosted the pound. Then came along the Fed minutes which disappointed the dollar bulls.

The dollar bulls were expecting a hawkish minutes and though the minutes did confirm a rate hike from the Fed in December, it did place a question mark over the future rate hikes in 2018 which are likely to get delayed as the Fed members were worried over the inflation data. This led to a weakening of the dollar and helped the pound to push through the 1.33 region after the release of the minutes. But the progress from thereon was pretty slow as the pound stalled after pushing through 1.33 and it ended the week near the highs of its range and above 1.33 which should keep the pound bulls interested.

Looking ahead to the coming week, we have Yellen testifying later in the week and the Prelim GDP data from the US. We also have the bank stress results from the UK and also the Manufaturing PMI as well. Expect some sort of a correction in the early part of the week as the US traders return back after their long weekend and seek to take out some profits but after that, we should see the pound continue to move higher in anticipation of some sort of a deal being reached in the Brexit talks over the coming few weeks.

This article was originally posted on FX Empire

More From FXEMPIRE:

• S&P 500 Index Price forecast for the week of November 27, 2017, Technical Analysis

• Gold Price forecast for the week of November 27, 2017, Technical Analysis

• NZD/USD Price forecast for the week of November 27, 2017, Technical Analysis

• GBP/USD Price forecast for the week of November 27, 2017, Technical Analysis

• USD/JPY Price forecast for the week of November 27, 2017, Technical Analysis

• DAX Price forecast for the week of November 27, 2017, Technical Analysis