The Asian market session saw the Pound Sterling trade lower against the US dollar after showing gains in last weekend's trading.
The price movement on the chart of the GBP/USD pair which reached the level of 1.38000 last Friday came back down again at the opening of trading earlier this week which was blocked in the SBR (support become resistance) zone.
The strengthening of the US dollar last week failed to be sustained until the weekend after the price dropped to below the 1.37000 level.
Although the Pound Sterling showed a weak performance, the price managed to show a rise again to the SBR zone of 1.38000. But has the hike managed to continue this week?
Analysts are still warning of the Pound’s trading remaining risky after the central bank of England (BOE) at its latest meeting maintained a dovish policy.
A drop below the Moving Average 50 (MA50) support level on the 1 -hour time frame on the GBP/USD chart will signal for the price to resume the bearish trend.
The price zone of 1.37000 will be the support zone on the initial decline of the price before a continued decline is expected to head to around 1.36000 recording the latest 8 -week low.
If the price manages to make an increase this week beyond the SBR zone of 1.38000, a higher price increase is expected.
The resistance level at 1.4000 will return to the price target again after the zone still failed to be broken after being tested several times throughout March.
The final reading of Gross Domestic Product (GDP) growth in the UK for the last quarter of 2020 will be monitored by investors and will affect Pound Sterling trading.
