The Brexit drama was even more thrilling on trading this week after the market saw a drastic move for the Pound currency in the European session yesterday.
On the GBP / USD pair price chart, the price testing the resistance level of 1.34400 then fell to 100 pips in the European session after being affected by the latest Brexit developments.
Investors continue to react to a statement by European Union (EU) Brexit Consultant Michel Barnier that talks are still failing to reach an agreement on a number of critical issues including fisheries.
He also warned that negotiations should be reached before the end of this week. Investors who interpret the situation as 'less pleasant' have made the value of the Pound depreciate significantly.
After the price plunged 100 pips in the European session yesterday, the price moved slightly below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement on the GBP / USD chart.
The price continued to decline in the New York session to below the level of 1.30000 making the daily decline around 150 pips.
However, testing the RBS (resistance become support) zone, the price failed to continue lowering before the rebound price made an increase driven by the continued decline in the US dollar in the market throughout the week.
On Thursday's trading, the price was seen to continue rising in the Asian session towards the level of 1.34000 but on a slow move to continue at the beginning of the European session.
The 1.34000 focus zone will be tested for investors to assess whether the price will continue to decline or remain bullish.
The rise will test the resistance of 1.34400 again before a higher destination is expected at 1.35000.
On the other hand, if the price plunges again, the RBS 1.33000 zone will be the focus again and also the support level to keep the price from falling lower.
