Although expected to move weakly, the Pound Sterling managed to show an improvement in early week trading against the US dollar in the European session yesterday.
It can be seen a price surge on the chart of the GBP/USD currency pair in the European session yesterday around 90 pips to a high level around 1.38450.
Yet the price plunged back in the New York session below the 1.38000 level to close the trade around the 1.37600 level.
Analysts are still expecting for a decline on the GBP/USD chart this week while the US dollar also remained traded strong supported by several factors such as a surge in US bond yields as well as risk-off market sentiment.
Adding pressure to the Pound was when Bank of England (BOE) committee member Gertjan Vlieghe delivered a dovish statement on monetary policy. He said there was likely to be no significant change in the policy in the near future.
The re -decline on the GBP/USD chart below the 1.38000 level again strengthened analysts ’previous expectations for a lower price decline.
The initial bearish target will be to the level of 1.37000-1.37800 which is the support zone for March trading.
The lower decline will mark the latest 8 -week low likely heading to the level of around 1.36000.
If the price rises, the SBR (support become resistance) zone of 1.38000 will be tested again. A rise beyond that zone will signal for a change in the bullish trend.
Next, a continued higher rise will again expect the price to head to the 1.40000 resistance zone.
