Unclear Direction For GBP / USD, Drastic Movement Is Expected To Happen Again

 The pound sterling is still trading at risk in the market due to uncertainty factors in the protracted Brexit negotiations.


The gains earned by the Pound failed to be sustained by the devaluation of trade in the European session yesterday.


With the movement of the price chart for the GBP / USD pair, the price is seen again soaring in the New York session making investors hope for a positive development in the Brexit negotiations.


However, the price hike was driven by the depreciation of the US dollar following investor sentiment of optimism for the US economic stimulus package to reach an agreement in the near future.


Further discussions will be awaited by investors for a decision that will be updated today.


Meanwhile, it can be seen that the price on the GBP / USD chart shows a bullish pattern although slow throughout the Asian session this morning with price movements already above the Moving Average 50 (MA50) support level in the 1 hour time frame.


The expectation of a higher rise will overcome the resistance level of 1.30000 before the price tests the high level of the price in the previous weeks.


The resistance zone at 1.32000 will be the next uptrend after the price clearly signals a bullish trend.



On the other hand, a change in market sentiment will see the price change towards a reversal to return to the support zone below the 1.29000 level.


A lower drop across the zone would lead to a lower level of around 1.27600.