As the US dollar strengthened in the European session yesterday, the Pound Sterling was seen to be holding back from continuing to fall in value.
The surge in US treasury yields to recent highs yesterday has supported the strengthening of the US dollar against other major currencies in the market.
It can be seen that the price movement on the GBP/USD chart was not very aggressive in the European session yesterday compared to the Euro which depreciated lower.
Supporting the Pound trade is a report of the reopening of the UK economy as well as a decline in infection cases which is more encouraging than other European zones.
Yet in the New York session, the Pound failed to hold on as the continued strengthening of the US dollar managed to push the price lower to almost the 1.37000 level.
The re -decline in US bond yields saw prices rise slightly until the end of the New York session saw the price close around 1.37300.
The price is still moving below the Moving Average 50 (MA50) barrier level on the 1 hour time frame of the movement giving a signal for the price to continue the decline in today’s trading.
The 1.37000 support zone will be tested before the lower plummeting price is expected to head to the next focus level at 1.36000.
If the price rebounds, the 1.38000 zone will still be a resistance for the price before continuing the rise up to the previous resistance level of 1.40000.
Investors will focus on today’s European session for UK Gross Domestic Product (GDP) data for final reading for the fourth quarter of 2020.
