The protracted Brexit drama has had a volatile impact on the movement of the Pound Sterling this week.
After 400 pips of price volatility on the GBP / USD pair chart on Monday, the volatile pattern continued on Tuesday trading.
Adding to the confusion is the report presented with conflicting results making investors fail to see the clear direction of price movements for the Pound.
Most recently, British Cabinet Minister Michael Gove announced that an agreement had been reached on all issues between the European Union (EU) and the United Kingdom (UK).
This has shown the price jump on the GBP / USD chart from the level of 1.33000 almost touching the level of 1.34000.
However, the surge was not sustained until shortly after, reports emerged that EU Brexit negotiator Michel Barnier had informed European ministers that the chances of a deal were slim.
Confirming further concerns when German Minister Michael Roth stated that there was no progress in the EU-UK negotiations and uncertainty continued to plague negotiations.
The stagnant price jump tested the RBS zone (resistance become support) at 1.33000 again with price movements remaining below the Moving Average 50 (MA50) barrier level over the 1-hour time frame until the end of the New York session.
However, continuing trading in the Asian session on Wednesday has managed to see the price pass the MA50 barrier and reach the level of 1.34000 but at a slow rise.
If the rise successfully continues past the resistance of 1.34000, the resistance zone at 1.35000 will be the focus of the next rise.
On the other hand if the price goes down again, the RBS zone 1.33000 will be tested again and will penetrate lower with the risk of continued Brexit.
A lower decline is expected to return to the support level at 1.32000 which was also the previous focus zone.
