In contrast to last week's Pound Sterling trading which ended with a 'happy ending', the situation was different earlier this week when the British currency traded lower again.
Last week, investors welcomed the negotiation agreement report was reached by both parties when the previously controversial fisheries issue found a solution.
On the GBP / USD pair price chart last week saw the price jump to the resistance zone of 1.36000 again.
However, at the beginning of trading this week, the bearish pattern started to re-form after the price also fell below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement.
This is believed to be due to investors scrutinizing the Brexit negotiation situation announced over the weekend. The agreement document with over 1,200 pages still shows some major issues are not resolved.
Concerns over the negotiations also put pressure on the Euro again after moving stronger against the US dollar yesterday.
The price on the GBP / USD chart yesterday also showed a 140 pips daily decline with the 1.35000 zone also penetrated.
Continuing trading in the Asian session today (Tuesday), the price returns to rise again to the level of 1.35000, but the decline will continue to be expected.
The continued price decline will test the focus zone at 1.34000 before the lower decline will lead to around the 1.33000 zone.
On the other hand, if the sentiment of Brexit negotiations returns positive, the price is likely to show a surge again after passing the price zone of 1.35000.
The 1.36000 resistance zone that failed to break for 2 consecutive weeks will be re-tested for the next increase.
