The major currencies in the market showed a significant decline at the start of trading this week with only the US dollar showing the best performance following rising demand in a risky market environment.
Not to be outdone is the Pound Sterling currency which was also affected where it had previously been stressed by several other factors especially the issue of the Brexit deal which remained protracted.
England Chief Medical Officer Chris Whitty has warned that if the rising trend of viral infections continues, the UK is expected to see an additional 50,000 cases per day by mid-October!
Therefore, UK Prime Minister Boris Johnson is reportedly considering 2 weeks of movement restrictions to curb the spread. The UK has now announced the latest blockade order in north-east England effective last week.
With the pressure continuing to rise against the Pound, the price movement on the GBP / USD pair chart again made a bearish move yesterday with around 190 pips daily.
The decline has dampened expectations for the price to continue rising after the price failed to break the 1.30000 level tested last week.
The next decline is expected to pass the support level of 1.27600 and then head to the lower support zone around 1.26700-1.26400.
If the price again shows an increase, the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement will be tested. Similarly, the SBR zone (support becomes resistant) below the level of 1.29000.
The still successful rise will test the 1.3000 barriers before a higher rise will signal a change in the bullish trend.
