A similar moving situation is shown on the GBP / USD currency pair chart on the second day of trading this week with the level of 1.30000 being the price support level.
If you look at the price movement in the Asian session yesterday, the price failed to pass the Moving Average 50 (MA50) barrier in the 1 hour time frame before descending back to the level of 1.30000.
However, the price jumped again from the RBS zone (resistance become support) past the dynamic barrier of MA50 with a daily increase recorded around 80 pips.
The factor driving the Pound to rise in the European session was the hope that the Brexit negotiations agreement between the United Kingdom (UK) and the European Union (EU) would be reached at the last minute. But the price increase is seen as temporary.
Testing the highs earlier in the week, prices fell again until the New York session ended following investor concerns over the market driving the strengthening of the US dollar.
Continuing in today's Asian market session, prices are moving slowly around the MA50 level with the direction of movement still unclear.
If a decline occurs, the level of 1.30000 will be tested again and if the price manages to break through, the RBS zone (resistance become support) at 1.29000 will be the next focus.
On the other hand, if the price rises, the weekly resistance level around 1.30800 will be tested before the price that continues to rise will return to the resistance zone below the level of 1.32000.
