The pound sterling was still weak in early trading this week while investors hoped for Brexit negotiations between the United Kingdom (UK) and the European Union (EU) this week.
However, these hopes failed to curb the depreciation of the Pound ahead of the European session due to the increasingly alarming pandemic transmission factor in Britain.
The Prime Minister of the UK, Boris Johnson over the weekend, has announced the restriction of movement restrictions in the UK due to fears that the effects of transmission on this wave will be twice as bad as before.
The implementation of the 'lockdown' is from November 2 to December 2 with only certain important sectors allowed to operate. Schools and universities are still open as usual.
Price movements on the GBP / USD pair chart are seen to continue to decline last week with the 1.29000 support level remaining tested in the European session.
Price movements below the Moving Average 50 (MA50) barrier level over the 1 hour time frame continue to project a bearish trend on the GBP / USD chart.
A lower price drop is expected to cross the SBR (support become resistance) zone in the range of 1.29000-1.28500 towards the support zone around 1.27600.
However, if there is a positive development in the Brexit negotiations, it is likely that the price will rise again with a rise of 1.30000 as the main focus.
The central bank of England (BOE) policy meeting will also have a big impact on the Pound this week.
