Thursday, November 12, 2020

GBP / USD Jumps Back Following Brexit Report

 The pound sterling traded lower again in the European session yesterday following concerns over the progress of the Brexit negotiations between the United Kingdom (UK) and the European Union (EU).


It is reported that talks in London are expected to end this weekend, but EU representatives do not expect an agreement to be reached.


Following the recent concerns have hit the Pound currency which was previously moving up since last week against the US dollar.


On the GBP / USD pair price chart yesterday, the price has tested the high level of 1.33000 recording the latest 10-week high.


However, following the poor development of Brexit has again shown the price plunged back around 120 pips to the support level of 1.32000 in the RBS zone (resistance become support).


Prices that have moved below the Moving Average 50 (MA50) barrier level over the 1 hour time frame also provide an early signal for a bearish trend change on the GBP / USD chart.


If the decline continues, the price will drop to the level of 1.31500 before the lower decline will test the RBS zone around 1.30600.



On the other hand, if the price jumps again, the resistance zone of 1.33000 will be tested again for the price to continue to record the latest highs.