Investors were shocked by the sharp strengthening of the Pound Sterling currency on display since the European session on Thursday yesterday. What has happened?
As analysts have seen in the market before, the decline in the GBP / USD currency pair chart is not enough to change the bullish trend.
At the beginning of the week it can be seen that the price has continued to rise last week by reaching a level of almost 3 years around 1.39500 before falling again the next day.
However, the decline in price hovered in the RBS zone (resistance become support) 1.38300 which is the price support level from falling lower.
After moving slowly in the zone, the European session on Thursday yesterday saw a resurgence of prices with the Pound strengthening against most other major currencies in the market.
This was prompted by a statement by a committee member of the central bank of England which indicated that the option to implement negative interest rates was seen as fading.
The employment sector is also showing good progress in the UK, but investors are still wary of the new virus variant transmission crisis while the development of vaccine immunization continues to be monitored.
The price on the GBP / USD chart yesterday jumped around 140 pips almost reaching the resistance level of 1.4000.
The price movement that continued in the Asian session this morning was slow but still hovered below the 1.4000 level.
The resistance level is expected to be broken if the price continues to rise for the price to continue to hunt for the latest record high since 2018.
However, if the price jumps again, the RBS zone 1.38300 will be re-tested to prevent the price from falling.
If the price manages to break through to a lower level, the price is seen to be heading to the next RBS zone at 1.37000.
