Not Yet Climbing, GBP / USD Recorded Higher Level 5 Weeks

 The pound sterling continued to strengthen until trading in the New York session yesterday after UK Prime Minister Boris Johnson announced a 3-tier system restriction as a measure to curb the spread of pandemics.

In addition, discussions on central bank policy, the Bank of England (BOE) stated that the implementation of negative interest rates will still be evaluated but do not look for implementation in the near future.

This was a factor supporting the strengthening of the Pound in the New York session after showing poor performance in the previous session.

Investors are looking forward to the UK employment data report ahead of the opening of the European session shortly which will affect the Pound trade.

On the GBP / USD pair price chart, the price has shown a decline close to the level of 1.3000 in the RBS zone (resistance become support) before the re-rise around 76 pips recorded the latest 5-week high of 1.30800.

The price then moved slowly before closing the New York session trading around 1.30600.

Continuing in the Asian session this morning, the price returned to a decline of around 30 pips following the strengthening of the US dollar due to several factors seen increasing risk in the market.

However, the price is still hovering above the Moving Average 50 (MA50) support level on the movement in the 1 hour time frame of the price still signals a bullish trend.

The rise will continue to be expected above the highs reached yesterday and towards the resistance zone 1.31500-1.32000.

On the other hand, if the price remains bearish, the RBS zone of 1.30000 will be the closest level tested.

If the price manages to pass the zone, the investor will evaluate the change in the bearish trend that will push the price to a lower level likely towards the RBS 1.29000 zone.