Investors were shocked by the price opening gap (gap) at the start of trading earlier this week, especially on the Pound and Euro currency pair charts.
On the GBP / USD major pair chart, the price opened higher than last week's close with a Pound jump with a gap difference of up to over 140 pips! What happened?
Ye exactly what you expect. None other than the situation was influenced by the progress of the Brexit negotiations with a recent report over the weekend that UK Prime Minister Boris Johnson agreed for further talks this week into January 1.
Nevertheless, investors remain wary of warnings by European Commission President Ursulan von der Leyen who sees the Brexit situation without an agreement as a result of negotiations.
Further sentiment will have a strengthening effect on the Pound while positive US economic stimulus package development this week will weaken the US dollar. This situation will push the price up on the GBP / USD chart.
The opening of the Asian session today (Monday) saw the price open around the 1.33600 level after last week's close above the 1.32000 level.
However the price showed a decline since the session started up to the focus zone of 1.33000 before showing signs of a resurgence.
Prices are also seen moving above the Moving Average 50 (MA50) level on the 1 hour time frame signaling a bullish trend.
The price increase will lead to the resistance level at 1.34000 before a higher rise towards the resistance zone at 1.35000.
However, if the price falls again below the 1.33000 zone, the RBS (resistance become support) zone of 1.32000-1.31500 will be tested after the price decline at the end of last week failed to penetrate to a lower level.
Investors will also focus on England central bank meetings as well as UK employment reports for Pound Sterling trading.
