Price movements on the GBP / USD currency pair chart are moving lower due to the US dollar factor which continues to strengthen in the market.
In addition to the increase in US treasury revenue, market sentiment is also seen to be more risky with tensions between the US and China as well as concerns over increased cases of Coronavirus infection.
The Pound continued to move weakly plagued by economic pressures with the implementation of movement restrictions to curb the spread of the virus.
The UK government is stepping up vaccine distribution to mitigate the effects of the increasingly critical crisis. Britain is now the fifth country with the highest death toll from the Coronavirus with more than 81,000 victims.
Prices have started trading earlier this week with a decline in the Asian session lowering last week’s support level around 1.35400.
The downtrend tested the key level of 1.35000 until trading continued into the European session.
With the bearish trend of the price displayed, it is likely that the price will continue to decline lower towards the RBS zone (resistance become support) 1.34000.
However, if there is a re-rise above the support level last week at 1.35400, the price has the potential to re-test the resistance zone at 1.36000.
Prices that managed to rise last weekend also failed to hold on before moving back below the zone again.
