The US Dollar’s continued and rather surprising strength against majors continues this morning, as the British Pound begins to attract further attention when traded against the US Dollar, with bulls defending a 1.21 price.
During this morning’s early-hours trading in the Asian session, which takes place before the opening of the European and North American trading sessions, the GBPUSD pair managed to keep its position similar to the breakout of a weekly resistance that took place during Monday’s trading across all regions.
This morning, within the Asian session, it became clear that buyers needed to go over the 1.215 mark to begin to gain the acceptance of the market when trading the GBPUSD pair.
The bearish outlook encouraged a sell-off of the British Pound with the GBPUSD pair having dipped below 1.2 at one stage, and when looking at the performance of the GBPUSD over the course of the past week, it has lost 200 pips, which is quite a considerable level of volatility for a usually relatively stagnant currency pair featuring two of the most-traded majors on the market.
Overall, it appears to be a bear market at the moment for the GBPUSD pair, and traders are keeping a keen eye on these sharp movements, as the US Dollar continues to hold its own despite similar economic challenges in the United States being experienced by the general population compared to those in the United Kingdom.
One thing’s for sure; if volatility is the lifeblood of the currency markets, then they are very much alive and the subject of many an analysis on both sides of the Atlantic.