Although the US dollar managed to strengthen against several other major currencies earlier in the week, the Pound Sterling was seen to be able to withstand further depreciation.
Judging by the price movement on the GBP/USD currency pair chart, the price is seen to be more flat compared to the price charts of other currency pairs that lost against the strengthening US dollar.
This is following a speech by the Governor of the central bank of England (BOE), Andrew Bailey yesterday which was seen as positive although it is not so convincing for investors to boost the value of the Pound.
He is optimistic about the development of the UK economy but is still wary of stressful factors. With this it can still support the value of the Pound from continuing to experience a fall.
On the GBP/USD chart yesterday, the price flattened below the 1.38500 zone but did not continue to decline beyond 1.38000.
Continuing in the Asian session on Tuesday, the price is seen still testing the SBR (support become resistance) zone with the rising price also testing the Moving Average 50 (MA50) barrier level in the 1 hour time frame of price movement.
If the Pound regains investor confidence and the value continues to rise again, the upside will be expected to head back to the resistance level of 1.4000.
Higher gains will re -test previous focus levels such as the SBR level of 1.41000 and the resistance level of 1.42000.
On the other hand, if the US dollar manages to push the price lower, the price will fall until it reaches the support zone of 1.37000.
