Contrary to sentiment at the opening of the market at the beginning of the Asian session, the Pound Sterling re-emerged significantly in the New York session following Brexit developments.
UK Prime Minister Boris Johnson has launched a final offer to the European Union (EU) in a bid to reach a Brexit agreement.
The EU is reportedly considering a bid on the fishery issue, which is still a hindrance to negotiations.
Based on the offer, the EU will reduce the value of fish catches in UK waters by up to 35% for a period of 5 years of transition, a very large percentage drop from last week's demand.
The positive sentiment of the talks has eased concerns over restrictions on movement in the UK following reports of the emergence of the latest virus variant which is also a factor in strengthening the US dollar.
Due to that, investors saw the price fall on the GBP / USD pair chart up to 250 pips after there was a ‘opening’ price gap of over 100 pips.
Prices that plummeted below the 1.34000 level also passed the 1.33000 zone before reaching the 1.32000 level in the support zone.
However, the market turmoil did not stop there before the price jumped again until the 300 pips rise was recorded to the level of 1.35000 until the end of the New York session.
Continuing trading in the Asian session this morning, the price is moving back slowly and descending to the level of 1.34000 with the Moving Average 50 (MA50) barrier level in the 1 hour time frame tested and will give an early signal of the price trend.
A drop below the 1.34000 level will push the decline towards the 1.33000 level before reaching the 1.32000 support zone.
However, if the price manages to maintain the momentum of the surge, the resistance level of 1.35000 will be tested before the continued rise will lead to a higher resistance zone at 1.36000.
Monitor the progress of sensitive Brexit negotiations affecting Pound Sterling trading in the market this week.
