Investors are beginning to see the potential for the Pound Sterling to regain a resilient pace in the market after moving weaker in recent weeks.
This is driven by the emergency employment scheme plan announced by UK Finance Minister Rishi Sunak yesterday aimed at assisting the government in supporting workers affected by the pandemic crisis.
The scheme will cover 3 quarters of normal income for 6 months starting next November. The announcement is part of a larger plan to protect the economy until winter.
Therefore, it can be seen that the price movement on the GBP / USD currency pair chart on Thursday yesterday did not continue the series of declines that have been on display since the beginning of the week.
The price was seen moving more flat yesterday above the support level of 1.26900 and the price increase is also seen to not be able to penetrate higher than the level of 1.27600 which is the SBR zone (support become resistance).
However, rise above the Moving Average 50 (MA50) barrier at the 1-hour movement of the price, is likely to give an early signal for a bullish trend change.
The US dollar also began to lose momentum towards weekend trading after a significant strengthening was on display since Monday.
If the price continues to decline, the support zone of 1.26700-1.26400 will be tested before the downtrend to a lower level will likely reach the 1.25000 concentration level.
On the other hand, if the price shows a reversal, the SBR zone around the price range of 1.28500-1.29000 will be the main focus. A higher rise past the zone is expected to lead to resistance 1.3000.
