The pound sterling remained trading higher although employment data reports published at the start of the European session yesterday were seen to show mixed readings.
Although the average income increased, the unemployment rate for September rose to 4.8% higher than expected. The level is also the highest since February 2017.
However, the development of the Brexit negotiations is seen as a factor in supporting the Pound trade where the EU Head of Consultation Michel Barnier has stated that he is redoubled in his efforts to reach a negotiated agreement.
The movement of the Pound currency is also seen to be able to compete with the US dollar which remains resilient from falling like other safe-haven trades after reports of the development of the Coronavirus vaccine.
On the price chart for the GBP / USD pair, the price has risen yesterday above the resistance level of 1.32000 with the daily rise recorded around 120 pips reaching the high of 1.32800.
The trend is still seen bullish following the price moving above the Moving Average 50 (MA50) level in the 1 hour movement but still failed to pass the high of 1.32800 reached yesterday until the trade that continues to the European session today.
If the resistance zone of 1.32800-1.33000 is successfully penetrated, the price is expected to continue to a higher level towards the resistance zone of 1.35000 which was tested in trading last September.
The level also failed to break when the price tested in December 2019. Investors will evaluate the price reaction around the zone.
On the other hand, if the price returns to the downtrend, the level of 1.32000 will be re-tested which forms the RBS zone (resistance become support).
