If Continued, GBP / USD Will 'Fly' This Week

 The pound sterling remained trading higher against the US dollar on continued trading earlier this week despite investors looking at a number of factors that still put pressure on the British currency.

This is due to the significant depreciation of the US dollar until the end of last week and has given room for other major currencies including the Pound to trade higher.

On the Brexit issue, UK Prime Minister Boris Johnson is set to step down without a deal with the European Union (EU) by October 15.

In addition, cases of viral infections in the UK are also at an alarming level with the expectation that movement restriction orders will be announced in critical zones.

On the price chart for the GBP / USD pair, the price has managed to break the resistance level of 1.3000 in last Friday's trade to close last week's trading at the latest 4-week high.

The price hit almost the 1.30500 high and closed last week trading around that level.

However, prices opened lower at the start of trading this week as the value of the US dollar strengthened slightly following discussions on the US economic stimulus package over the weekend.

Even so, optimistic expectations for the agreement to reach the stimulus package talks will weaken US dollar trading in the market.

Trading at the beginning of the week saw the price increase continue but the price is still testing the resistance level reached last week.

A higher rise is expected to reach the high of 1.31500 if the US dollar remains weak this week.

On the other hand, if the price returns to the downtrend, the level of 1.30000 will be the main focus for the price to re-test the RBS zone (resistance become support).

A drop below that level will signal a change in the bearish trend is about to begin.