The presentation of the 2021 UK budget by Finance Minister Rishi Sunak yesterday was seen as a positive sentiment for the UK economy.
The economic assistance scheme that helped ease the burden of the people was extended until September in an effort to continue to support the UK economic recovery.
The Pound Sterling however failed to maintain a strengthening against the US dollar when the United States (US) currency rebounded in the market.
The strengthening of the US dollar backed support from rising US bond yields. However, investors remain cautious ahead of the US NFP job data report over the weekend.
On the GBP / USD pair price chart, Tuesday's bullish momentum failed to maintain after the price was still stuck at 1.40000 resistance.
Unsuccessfully past the 1.4000 resistance, the price moved horizontally below that level but was supported at the Moving Average 50 (MA50) support level within the 1 hour time frame of the price movement.
Continuing at the beginning of this morning’s Asian session, the price has moved down below the MA50 signal for a bearish trend.
The price will test the RBS zone (resistance become support) 1.38300 if the US strengthening continues to push the price lower.
Passing the zone will push lower prices towards the support level of 1.37000.
If the price rises above the 1.4000 resistance, investors will expect the uptrend to a higher level.
Resistance levels such as 1.41000 and 1.42000 will return to the price focus for changes to the bullish trend.
