The pound sterling still managed to maintain its strength in Tuesday's trading despite showing a decline in the European session before rebounding in the New York session.
On the price chart of the GBP / USD pair yesterday saw the price initially drop around 60 pips to the RBS zone (resistance become support) 1.33000 following reports of poorly published UK employment data as well as news of movement restrictions in London due to the rise in viral infections.
However, the price jumped again from the RBS zone with an increase of around 180 pips to the level of 1.34700 until the end of the New York session before the price moved slowly again in the Asian session this morning.
The surge was driven by the positive development of the Brexit negotiations which are reportedly close to reaching an agreement giving confidence in investors in the market.
But beware of warnings that UK Prime Minister Boris Johnson who sees the end of these negotiations is a no-deal Brexit.
While investors await the official announcement of the negotiations, various speculations will continue to hover in the market and will influence investors' decisions on trading.
The significant price increase on the GBP / USD chart is also seen to be supported by the US dollar depreciation factor in the market with a tendency for risk-on sentiment.
After successfully overcoming the highs at the beginning of the week, the price is expected to continue the momentum towards the resistance zone of 1.35000.
A successful rise above the resistance zone and the height level reached in early December will record the latest highs since May 2018 trading.
On the other hand, if the price falls again, among the important levels that need to be focused on is in the 1.34000 and 1.33000 zones which will be the price support level.
The next lower drop will re-test the monthly support zone around 1.32000-1.31500.
