The Pound Sterling showed excellent trading performance earlier in the week when it surged as soon as the Asian market session started on Monday.
On the price chart for the GBP / USD currency pair, it can also be seen that the price has moved above the previous level of 1.33000 to the level of 1.34000.
Hopes for the announcement of Brexit negotiations this week were a factor in supporting the strengthening of the Pound Sterling.
European Union (EU) Brexit Consultant Michel Barnier said there were still ongoing differences of opinion in the talks but both sides were working to reach an agreement.
After the price approached the 1.34000 level, the market was shocked by the price decline following the strengthening of the US dollar at the beginning of the New York session.
The price plunged back around 130 pips below the 1.33000 level but closed the New York session trading above that level again.
Observed on the movement in the 1 hour time frame, the Moving Average 50 (MA50) level becomes the price support level which prevents the price from falling lower.
Investors will look forward to the market reaction as well as monitor current sentiment in determining the direction of further movement after yesterday's drastic price movement.
The price increase will again test the resistance level of 1.34000 for the price to continue to record the latest high level since last September trading.
However, if the price manages to make a break below the 1.33000 level breaking through the RBS (resistance become support) zone, the price decline is expected to return to the previous focus level of 1.32000.
