Investors are back to see prices resuming the bullish trend on the GBP / USD currency pair chart after a speech by Federal Reserve (Fed) Chairman Jerome Powell on a central bank policy that weakened the US dollar.
Previously, prices soared with the strengthening by the Pound Sterling following the Governor of the central bank of England signaling not to implement negative interest rates as it is feared it will cause problems in the future.
However, the strengthening of the price stalled at the resistance of 1.37000 after the price depreciated following the strengthening of the US dollar driven by the increase in US treasury yields which attracted investors to buy higher.
Yet a dovish signal by Jerome Powell for further policy easing has depreciated against the US dollar at a New York session yesterday.
The price is seen rebounding test the resistance level of 1.37000 but still failed to break it before the price movement slowed in the Asian session this morning.
The price movement that has started to be above the Moving Average 50 (MA50) support level again within the 1 hour time frame gives an early indication that the price will continue to rise.
If the price manages to overcome the resistance of 1.37000, the price will record the latest high level since the April 2018 trade.
However, if the price falls again, the RBS zone (resistance become support) at 1.36000 will be tested again to support the rise.
If the price continues to fall lower, a decline will be expected up to the level of 1.35000 or the support zone of 1.34000.
