The GBP/USD currency pair continued to prove its strength on Monday, displaying a bullish structure beneath the 1.2900 level. Many investors used the opportunity to take on a buy position during the Asian session, pushing the pair up. As of writing GBP/USD is at 1.2933, 0.16% higher on the day. The Pound Sterling (GBP) is giving back some of the big gains it made earlier against the US Dollar (USD) to begin the week. That turn around follows disappointing Flash Purchasing Managers’ Indexes (PMIs) from both sides of the pond.
No wonder dip-buyers jumped into action on Monday. Speculators drove the GBP/USD pair further up once it had touched a one-and-a-half-week low level on Friday. The currency pair looks to have snapped a two-day losing streak. As of this writing, spot prices are just under the 1.2930 level. That represents an increase of almost 0.10% for the day.
The week started off on the right foot for the Pound Sterling. This upbeat mood was supported by better than expected PMI data from the UK and the US. These PMIs, considered a global economic health indicator, were mixed and added to the chaotic market mood swings. The GBP's gains against the USD highlight investor confidence in the UK's economic prospects despite recent challenges.
Here’s a look at what’s helping the GBP/USD pair remain resilient. Market participants react in real time to data prints on the economy and sentiment across markets, fueling its power. Monday’s action would indicate that investors are cautiously optimistic, seeking value in dips and using leveraging opportunities when they come.