Traders Are Not Surprised Even If GBP / USD Continues To Plunge This Week

The pound sterling remained weak as expected with continued pressure on the British currency.

UK Prime Minister Boris Johnson has announced a new restraining order while England central bank (BOE) Governor Andrew Bailey does not see any implementation of negative interest rates in the near future.

Brexit negotiations return to Pound investors following EU Brexit negotiator Michel Barnier leaving for London for an informal talk.

Price movements on the GBP / USD currency pair chart have been declining since the beginning of the week with pressure also driven by the strengthening of the US dollar in the market.

Risk market sentiment as well as the Federal Reserve (Fed) 's positive view of raising interest rates even though inflation has not yet reached the 2% target, continues to support the US dollar trading momentum.

Yesterday's price decline has managed to pass the support level of 1.27600 after the price that jumped to the SBR zone (support become resistance) 1.28500 again continued to decline again.

Ahead of the UK economic data at 4.30pm local time, prices have shown a decline at the start of the European session after moving slowly in the previous session.

The price dropped to the support level around 1.26700-1.26400 which was the previous RBS (resistance become support) zone.

A lower drop would signal a recent 10-week low likely to reach the 1.25000 concentration level.

On the other hand, if the price jumps again, the previous focus level such as 1.27600 and SBR zone 1.28500 will be re-tested.

The price can reach a rise up to the resistance level of 1.30000 if a change in the price trend occurs.