This is one of the factors that caused GBP / USD to fall 140 pips yesterday

 The pound sterling was among the currencies that showed a significant depreciation effect on trading yesterday with increased movement restrictions in Europe to curb the spread of the Covid-19 epidemic in addition to pressure from the English central bank statement.


The Bank of England (BOE) has again put pressure on the Pound when it says it is considering implementing negative interest rates in an effort to support the affected UK economy.


In addition, a factor that also weakened the Pound trade was the development of Brexit negotiations which remained gloomy approaching the negotiation deadline of 15 October.


Look at the price movement on the GBP / USD currency pair chart. Prices have signaled a change in the bearish trend, ending the series of gains exhibited last week.


The daily decline was recorded around 140 pips after the price dropped below the Moving Average 50 (MA50) barrier level on the movement in the 1 hour time frame.


The decline was also driven by the strengthening of the US dollar in market sentiment which was again considered risky by investors causing the safe-haven currency to rise again.


After the price falls below the level of 1.30000, a lower decline is expected to enter the RBS (resistance become support) zone at 1.29000.


However, be wary if the US dollar weakens again after an agreement on US economic stimulus package talks is reached.



The price may return to the uptrend to the level of 1.30000 or to the high level reached at the beginning of the week around the resistance of 1.30700.


Next, the resistance zone below the level of 1.32000 will look forward to further price increases.