Beware Of GBP / USD Rise, Decrease May Happen

 The pound sterling traded slightly higher against the US dollar despite pressure still plaguing the European currency following concerns over the progress of the Brexit negotiations between the European Union (EU) and the United Kingdom (UK).

It is reported that the UK intends to stop Brexit negotiations if an agreement fails to be reached on October 15.

British Cabinet Minister Michael Gove said the readiness for a no-deal deal with some issues remained a barrier to negotiations.

Following the risk, trading on the GBP / USD price chart yesterday made a jump of 80 pips to the support level of 1.18500 after the previous rise.

However, prices are back on the rise as the US dollar remains weak in the market after market sentiment recovered with a recent statement by President Donald Trump for assistance for the aviation and small business sectors.

In the Asian session this morning, the moving price made a slow rise but has passed the Moving Average 50 (MA50) barrier level on the 1 hour price movement which is likely to give an early indication for a higher rise.

However, the pressure on the Pound is likely to push the price back to the 1.28500 support level tested yesterday.

A lower decline is expected to reach the level of 1.27600 for the price of testing the RBS zone (resistance become support).

If the price manages to continue rising, the resistance level of 1.30000 will return to the target price target.

Exceeding that level will record the latest high level 4 weeks after the price dropped below that trade last September.