Price movements on the GBP / USD pair chart again showed a reversal in the New York session yesterday after a significant spike in previous sessions.
The pound sterling moved strongly in the market after the Governor of the Bank of England (BOE) indicated that the implementation of negative interest rates was inappropriate and posed controversy and various problems in the future.
This has boosted the value of the Pound in the market with investor confidence in the British currency to record a daily increase on the GBP / USD chart yesterday around 200 pips!
However, the uptrend on the GBP / USD chart is hindered at the resistance level of 1.37000 which also failed to break through last week's trading.
The decline was also driven by the re-strengthening of the US dollar on display in the New York session until trading continued into the Asian session this morning.
US Treasury yields and rising US inflation data are among the factors strengthening the US dollar in the market as well as US political uncertainty after Trump's dismissal also prompted demand for the US dollar as a safe-haven currency.
The price again made a decline to the RBS zone (resistance become support) 1.36000 with the Moving Average 50 (MA50) support level at 1 hour movement tested.
If the price penetrates lower past the zone, the expected decline in price will lead to the RBS zone of 1.35300 as well as the concentration level of 1.35000.
However, if the price manages to soar again, the resistance level of 1.37000 will be tested again for the price to continue to record the latest highs.
