Investors were increasingly alarmed when a warning by the central bank saw a significant drop in the value of the Pound Sterling especially at the New York session yesterday.
The Deputy Governor of the central bank of England (BOE) had previously stated that the excessive inflation of the British currency would have an unhealthy effect on inflation.
Coupled with the consolidation of the US dollar, the price on the GBP / USD currency pair chart is clearly pounding for investors when the price has plunged to 200 pips.
The price increase that failed to reach the weekly resistance level of 1.42000 which is also the highest level since April 2018, shows the price plummeting again to the level of 1.4000.
Continuing in the Asian session on Friday morning, prices fell lower but the momentum of the strengthening of the US dollar slowed again. Price movements are expected to be more aggressive again in the European and New York sessions before trading this week ends.
The next decline is seen to return to the RBS zone (resistance become support) at 1.38600-1.38300.
However, in the event of a price increase, the focus level that will be tested as resistance level is at 1.41000 before heading back to the level of 1.42000.
The UK Chief Health Officer has suggested that the Coronavirus warning level be lowered due to the declining pressure on the health system.
Good developments in the UK economy could support a further increase in the value of the Pound Sterling from further falling.
