Following the downturn in the US dollar last week, most other major currencies in the market took advantage of the opportunity to rise.
But the opposite happened to the Pound Sterling when the currency showed a bearish pattern on last weekend's trading against the US dollar.
This is due to the fact that Brexit uncertainty makes investors wary of the worst situation after the drama dragged on.
European Union (EU) Brexit Consultant Michel Barnier visited London last week to resume talks following a number of important issues still stifling agreement between the two sides.
In fact, UK Prime Minister Boris Johnson stated that Britain would be fine even if there was no agreement with the bloc.
Thus, in last weekend's trading, you can see the downward movement on the GBP / USD pair chart after the resistance level of 1.34000 failed to break.
Prices are back below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price signal giving an early signal of a bearish trend change again.
Friday's decline reached the RBS zone (resistance become support) 1.33000 but the price failed to continue lowering before closing last week's trade slightly higher from the zone.
Following the depreciation of the US dollar, the start of trading in the Asian session today is seen showing a rise in the GBP / USD chart but at a slow pace and testing the MA50 dynamic barrier.
Analysts still expect prices to make a decline based on the initial formation of a bearish trend. The price will test the RBS zone 1.33000 again.
If the price manages to break through the zone, a lower decline is expected towards the 1.32000 concentration level.
However, the continued depreciation of the US dollar could support a higher price hike to return to resistance 1.34000.
The price that successfully passes the resistance zone will change the analyst's view for a bullish price trend that will push the price towards the latest highs up to around 1.35000.
