The pound sterling traded lower again in the New York session yesterday following less encouraging developments in the Brexit negotiations.
As before, the fishing issue is still a stumbling block for the agreement reached between the European Union (EU) and the UK.
Although the same situation is recurring and investors can already anticipate the matter, but the impact on price movements remains a concern for investors.
On the price chart for the GBP / USD pair, the price resumed trading on Tuesday heading back to the focus zone of 1.33000 after the price managed to show a strong jump the previous day.
However, it almost touched the 1.33000 level of the rebound to close the New York session trading higher around 1.33600.
The price drop in the New York session was also driven by the strengthening of the US dollar in the market following the risk of new virus variations emerging as well as the possibility that Donald Trump will not sign the Covid-19 aid package once approved.
Continuing trading on Wednesday, the price rose in the Asian session but was blocked between the 1.34000 resistance and the Moving Average 50 (MA50) support level within the 1 hour time frame of the price movement.
If the rise continues successfully, the price zone of 1.35000 will be re-tested which is the weekly resistance level.
However, if the price fails to pass 1.34000 and plunges again, the support level in the 1.33000 zone will return to focus.
A continuous decline will push the price towards the support zone below the level of 1.32000.
