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The GBPUSD pair has been showing some remarkable strength over the last few weeks as it has managed to survive the onslaught from the dollar over this period. The pair has been hovering around the 1.35 region most of the time and this has helped the bulls in the pair continue to have hope as far as the pair is concerned.
GBPUSD Holds On
While most of the other instruments have been hit hard by inbuilt weakness at the same time, this is something that has been missing as far as the pound is concerned and it is probably this reason that is helping it to continue to hold fort. The Brexit process continues on its winding way and so far the UK PM May has been able to surmount all the challenges that she has been forced to deal with and she has managed them quite well considering the fact that some of these challenges have been quite great.
Looking ahead, it is clear that there is a lot of buying in the 1.35 region and it would be interesting to see where the pair closes for the week. If the pair does manage to close the week above this region, then in the coming weeks, we could see the bulls in the pair pose a serious challenge to the bears and try and push the pair higher. We believe that we are seeing some good accumulation going on in the pair which should help it in the coming weeks.
Looking ahead to the rest of the day, we do not have any major news from the UK or the US for the day and hence we can expect some more consolidation and ranging for the day. It is likely that the close of the day and the week would be watched very closely by the traders and the investors for signs of weakness or strength.
This article was originally posted on FX Empire