The GBP/USD currency pair has gone on to accomplish a significant feat of its own, printing new three-year highs above 1.3600. During early European trading on Monday, the pair was seen making further consolidation of its gains, particularly trading solidly at 1.3594. This movement is indicative of a huge increase in strength for the British pound compared to the US dollar.
Market watchers are quick to point out that this move higher for GBP/USD occurs against a picture of very thin trading conditions. Even as both the UK and US markets are closing on Monday and reduced trading volumes with them. This lack of opposition likely played a role in allowing the duo to keep their elevated levels without much of a fight.
The recent rise in GBP/USD can be attributed to various factors, including positive economic sentiment surrounding the UK economy and ongoing developments in international trade. With the currency pair floating around this crucial level, traders are excited but cautious with their heads turned towards future currency pair performance.
With this consolidation at these still elevated levels, it forms a base to make even bigger gains should the market set up for it. Leading economic indicators to watch for are highlighted by experts. At the same time, they need to be vigilant for geopolitical events that may change market dynamics in the weeks ahead.