Boom! GBP / USD ‘Explode’ 200 Pips!

 The volatility of market sentiment on Wednesday has been a major driver of price movements in the market making investors also nervous.

The main focus was on the European session when the weak movement of the Pound currency in the previous few sessions has seen the price ‘explode’ soaring high that the daily rise reaches 200 pips!

This is due to the report on the Brexit negotiations where the UK will extend the negotiation period after the deadline set today which is 15 October.

Although the Pound had previously been impressed by the statement of the English central bank which was considering negative interest rates, the positive development of the Brexit negotiations was enough to strengthen the Pound trade yesterday.

On the price chart for the GBP / USD pair yesterday, the price initially continued to decline in the Asian session around 80 pips.

However, the price trend changed in the European session when the price jumped 200 pips again to the New York trading session above the key level of 1.3000.

The daily highest reached yesterday reached 1.30640, failed to overcome the previous day's high and closed the trade 50 pips lower.

Starting trading in the Asian session above the 1.3000 level, the price is seen to maintain the bullish momentum despite the slow price movement.

The rise is expected to overcome this week's resistance level around 1.30800 before continuing towards the 1.32000 resistance zone.

However, be wary if the direction of the price movement changes again and makes a decline below the level of 1.30000.

The decline is seen to return to the RBS zone (resistance become support) below the level of 1.29000.