GBP / USD tests 1.3000 resistance to record latest 4 week highs

 With the depreciation of the US dollar, the Pound Sterling also showed an increase even at a slower pace than the Euro.

Investors are still optimistic about the hopes for the European Union (EU) and the United Kingdom (UK) to reach an agreement in the Brexit negotiations after the negotiation period is extended until the end of the month.

While the US dollar remains weak, it is expected that discussions on the US fiscal stimulus package will yield positive results.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin reportedly will keep in touch via phone call for further discussions.

On the price chart for the GBP / USD pair yesterday, the price that tested the level of 1.29000 and also the resistance level of Moving Average 50 (MA50) on the 1 hour movement the price then jumped around 90 pips almost touching the resistance level of 1.30000.

A successful increase is likely to lead to a higher resistance zone around 1.32000.

However, if the Brexit negotiations are not encouraging, the price has the potential to return to the 1.29000 support level.

A lower decline will lead to the RBS zone (resistance become support) at 1.27600 before reaching the support zone 1.26700.