Temporary Surge Only, Investors Disappoint GBP / USD Immersed Again

 After a sharp surge in trading last Wednesday, the Pound Sterling currency depreciated again as investors remained wary of uncertainty over the Brexit negotiations.

Brexit UK chief negotiator David Frost reiterated that the UK did want a negotiated agreement with the European Union (EU).

He later complained that the EU was no longer committed to cooperating intensively.

EU Brexit Consultative Leader Michel Barnier said the EU would do anything to reach an agreement but insisted on a number of issues, particularly on UK access in the EU's single market.

Further, investors will await a decision by UK Prime Minister Boris Johnson himself for a clearer signal for the direction of the Brexit negotiations.

This week's GBP / USD currency pair chart shows turbulent movements making investors uneasy.

In yesterday's trading, the price has made a decline of 140 pips after the 200 pips price spike the day before.

Moving back below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement gives a bearish trend indicator with a slow price in the Asian session this morning around the 1.29000 level.

A lower decline is expected to cross the RBS zone (resistance become support) towards a lower level around 1.27600.

A steady price decline will make the 1.26700-1.26400 support zone the next destination.

However, if the price jumps again to close this week's trade higher, the level of focus to be tested is at 1.30000.

A higher rise will test this week's high around resistance 1.30700.