Until When Will GBP/USD Be Able To Survive The Plunge? - Kakiforex | Forex markets for the smart money. Until When Will GBP/USD Be Able To Survive The Plunge? Until When Will GBP/USD Be Able To Survive The Plunge?

March 23, 2021

Until When Will GBP/USD Be Able To Survive The Plunge?

 The Pound Sterling remained traded weak at the market opening earlier this week ahead of some UK economic data to be published and which will affect the movement of the Pound.


Investors are wary of the release of the UK employment data report in the upcoming European session which will also be given attention by the central bank in setting monetary policy.


Also put the latest pressure on the Pound when the European Union (EU) reportedly threatened to restrict vaccine exports to the UK due to the issue of slow shipments and posing major problems in Europe.


The price movement on the GBP/USD chart is seen hovering weakly at the support level of 1.38300 while the US dollar failed to maintain its strength following the return of declining US bond yields.


However, the price remains moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame of the price movement for the still bearish trend signal.


The lower price decline will be expected past the support zone of 1.38000 before the price heads to the lower support zone around 1.37000.



The decline is likely at a slower pace if the US dollar has not yet found the pace to resume strengthening.


On the other hand if the Pound manages to strengthen again, the price may jump past the MA50 barrier for the latest signal of the beginning of the bullish trend.


The upside is still targeted towards the 1.4000 resistance zone which remains invulnerable after being tested several times before.


The next successful price increase is seen to lead to the focus resistance levels of 1.41000 and 1.42000.