True to Market Expectations, GBP/USD Continues to Dive Into Bottom - Kakiforex | Forex markets for the smart money. True to Market Expectations, GBP/USD Continues to Dive Into Bottom True to Market Expectations, GBP/USD Continues to Dive Into Bottom

March 25, 2021

True to Market Expectations, GBP/USD Continues to Dive Into Bottom

 The Pound Sterling's trading value continued to decline over the weekend despite published UK economic data showing the manufacturing and services sectors for March grew well.


Still, stressful is the UK inflation data published at the start of the European session with the consumer price index reading for February declining lower than the reading expected to increase.


In addition, investors are also monitoring the issue of export restriction warnings by the European Union (EU) against the UK following the slow delivery of vaccines.


The pound sterling slipped lower against the US dollar to a 6 -week low as can be seen on the GBP/USD chart.


After the price managed to break the support zone of 1.38000 on Tuesday, the decline has continued up to the level of 1.37000.


Continuing up to trade in the Asian session today, the price moved slowly in the 1.37000 zone with the lowest level successfully reached around 1.36750.



The decline is expected to continue until the end of this week's trading if the price remains below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the GBP/USD chart.


The next lower decline will be to the support zone of 1.36000 which was also tested in last February's trading before the price jumped higher.


The bullish situation will expect the SBR zone (support become resistance) 1.38000 to be tested before a higher rise will signal a change in the bullish trend.


Investors will be wary of assessing the Pound’s movements over the weekend which will react to UK retail sales data to be published on Friday.