GBPUSD Awaits Fundamentals
The strength of the dollar seems to have had little impact on the pound as it has been buoyed by the strong progress in the Brexit process through the tensions between Russia and UK over the issue of killing of spies has added some pressure on the pound. But the pound bulls have generally done well to keep the GBPUSD pair away from the lows of the range around 1.38 and this is likely to continue in the short term as the market waits in anticipation for the developments over the rest of the week.
During this week, we have meetings in both the Fed as well as the BOE and this is likely to bring in a lot of volatility. While the Fed is expected to hike rates for the first time this year during their meeting this week, it would be interesting to see how the BOE responds. The BOE has been trying to sound hawkish but it is clear that their hands are tied due to the uncertainty over the economy following the Brexit and this is likely to keep them away from adopting any drastic measures to shore up the economy.
So, it would be interesting to see if they do anything this week and whether they would continue to sound hawkish during this period. As for today, there is not much by way of economic news or data from both the UK as well as the US and hence we are likely to see some consolidation continue in the 1.39 region for today.