In contrast to the Euro, which rose after the US dollar depreciated yesterday, the Pound Sterling weakened with a surge in the European session failing to continue.
This was due to market concerns ahead of the England central bank (BOE) policy meeting with consideration of negative interest rates.
Further policy easing is also expected after the UK economy was severely affected by the spread of the Coronavirus pandemic which saw a spike in daily infections.
On the GBP / USD pair price chart, the price has plunged further at the beginning of the Asian session from the high of around 1.31400 to the level of 1.29200 recording more than 200 pips daily decline.
Rising prices occurred in the European session following the depreciation of the US dollar following market reactions to the voting results during the US election.
However, the Pound failed to capitalize on the consolidation space due to concerns over the Bank of England (BOE) dovish decision at a recent meeting.
A lower price drop is expected to retest the RBS (resistance become support) zone at 1.29000 which has been the price support level since last October.
The price that continues to decline through the zone will lead to the support zone at around 1.27600.
However, if the price jumps higher again, the initial level of price concentration is seen around 1.30600 before the higher rise will lead to the resistance zone of 1.32000.
Focus on the results of the BOE policy meeting at the beginning of the European session shortly to monitor the impact of price movements on Pound Sterling trading.
