The main focus of the market earlier this week revolved around Brexit developments which have rocked the market displaying drastic price movements for the Pound currency.
Pressure on Brexit negotiations yesterday when UK Prime Minister Boris Johnson threatened to step down from the negotiating table following if the European Union (EU) refused to loosen their earlier demands.
Following that, the price on the GBP / USD currency pair has plummeted around 200 pips to start trading this week.
The New York session saw the Pound return to trading following recent reports of negotiations that slightly eased the market.
Negotiations are still pending but will resume in Brussels on Tuesday. The latest developments are expected to continue to impact volatile price movements for the Pound this week.
The decline initially reached a low of around 1.32250 before the price rose 180 pips to the level of 1.34000 again.
However, trading in the Asian session today saw the price move lower again around 1.33500 with further Brexit developments expected in the European session.
The price decline is seen to re-test the RBS zone (resistance become support) 1.33000 and if the decline continues, the lower RBS zone at 1.32000 will be the price focus.
Analysts also expect a drop to 1.30000 again if the negotiations result in failure before the EU conference on Thursday.
On the other hand, if the trend is good, the price on the GBP / USD chart will jump past 1.34000 before the 1.35000 resistance zone tested last week will be the next bullish destination.
