Monday, November 9, 2020

With Brexit Uncertainty, Can GBP / USD Sprint Higher Again?

 Price movements on the GBP / USD currency pair chart last week have shown drastic movements with relatively large value fluctuations in the range of around 300 pips.

After plunging on election day, prices began to show a resurgence before flattening on Friday and closing last week's trading in the resistance zone above the 1.31500 level.

The price that started trading around that level earlier this week showed a slow rise towards the high level of 1.32000 but remained flat in the zone until connecting to the European session.

The rise was due to the depreciation of the US dollar after the stock market soared after Joe Biden's victory in the presidential election.

While the Pound Sterling is still trading at risk with the slow development of Brexit negotiations between the United Kingdom (UK) and the European Union (EU).

However, with the expectation that the US dollar will continue to depreciate this week, it will support a higher price on the GBP / USD chart, although the Pound is still seen as risky.

The next price increase will lead to the resistance zone at the height of 1.33000 to record the latest 10-week high.

However, if a price decline occurs, the nearest support level of the price is seen in the zone around 1.30600 and the Moving Average 50 (MA50) level in the 1-hour time frame will be tested for the price trend signal.

A lower decline will lead to a significant level of 1.30000 before the 1.29000 support zone becomes the next focus.