As expected, the Pound Sterling continued to show further drastic price movements in Wednesday's trading with a significant price spike following investors' reactions to the Brexit issue.
Sterling jumped to a 6-week high against the US dollar following expectations for further talks. Brexit UK chief negotiator David Frost said talks with the European Union (EU) would resume on Thursday in hopes of a positive outcome.
Sterling strengthening also shows the market is more focused on Brexit developments despite speculation that the central bank is implementing negative interest rates.
On the price chart for the GBP / USD pair, the price slowed after reaching a 6-week high in the resistance zone below the 1.32000 level.
The daily rise recorded 240 pips after the price moved above 1.30000 at the beginning of yesterday's European session.
Continuing in the Asian session this morning, prices slowed and moved down from the resistance zone reached in the previous session.
A higher rise is expected to pass the resistance zone 1.32000 before the next bullish target is at the resistance zone 1.33000.
On the other hand, investors should also be wary of the negative results of negotiations that would further depreciate the Pound trade.
The price decline will return to the key level of 1.30000 before heading to the support zone at 1.29000.
The focus of the European session will soon be on Governor Andrew Bailey's speech which could affect the movement of the Pound as well as the development of Brexit.
