Market sentiment continued to recover with the development of the United States (US) economic stimulus package after President Donald Trump signed the package on Monday.
Continuing that positive momentum, $ 600 aid to Americans will increase to $ 2,000 after the U.S. House of Representatives approves the proposal.
Previously, the economic package agreement stalled after Trump voiced his displeasure as the value of the $ 600 aid to the people was very low and called for further improvement. On Monday, he changed his mind and signed the package.
This positive sentiment has affected the depreciation of safe-haven currencies such as the US dollar and the Japanese Yen.
Meanwhile, another market-focused focus on Brexit developments has returned investors' concerns even though last week it was reported that agreement on fisheries issues had been reached.
Although the Yen moved weak this week, it looked better than the Pound Sterling which showed its lowest performance earlier in the week.
On the chart the GBP / JPY pair also saw a drop in prices starting after a significant spike last week.
Last Thursday, it could be seen that the price tested the resistance level at 140.200 before the price soared on Friday to reach the high level at 141.200 before falling again.
Despite reaching its latest high of 3 months, the price started to show a bearish pattern when the decline in yesterday's trading returned to move below the Moving Average 50 (MA50) barrier level within the 1 hour time frame.
In the Asian session this morning (Tuesday), the price that started trading around 139,500 returned to the upside but investors remained expecting the price to continue declining if it failed to pass the resistance level of 140,200.
The price drop will test the RBS zone (resistance become support) below the level of 139.200 before the lower decline will test the support level around 138,300.
If the price manages to jump higher than the resistance of 140.200, the high level of 141.200 reached last Friday will be tested again.
