While the US dollar took a short break from the strengthening momentum at the end of last week's trading, the Pound Sterling showed a flat move after performance declined from the beginning of the week.
If you look at the price movement on the GBP / USD currency pair chart, the price has been moving horizontally from Wednesday to Friday above the level of 1.27000 inhibiting a series of price declines in the previous days trading.
Factors supporting the Pound from continuing to depreciate are the latest optimistic expectations of the Brexit deal. British diplomats are optimistic about reaching an agreement with the European Union (EU).
UK Cabinet Minister Michel Gove visited Brussels in preparation for the latest talks on Tuesday, the last phase of the Brexit trade talks.
Starting trading this week, price movements for the GBP / USD chart in the Asian session slowed around 1.27600-1.27700 in the SBR zone (support become resistance).
A successful price increase is expected to lead to the SBR focus zone of 1.28500-1.29000 before a higher rise will lead to the resistance level of 1.30000.
On the other hand, if the US dollar strengthens again in the New York session shortly, the price will be pressed lower again below the Moving Average 50 (MA50) support level within the 1 hour time frame of the price movement.
The lower decline will return to the support level around the price range of 1.26700-1.26400 which is also the RBS zone (resistance become support).
