The price movement on the chart of the GBP/USD currency pair over the weekend has provided interesting action with the ‘crazy’ movement of the price and added shocks in the market.
If you look at last week's trading, the price several times tested the resistance level of 1.38000 in the SBR zone (support become resistance) but it is difficult to break it.
On Friday, the price is seen to have started to show a bearish pattern again when moving down below the Moving Average barrier level (MA50) on the 1 hour time frame of the price movement for the bearish trend signal.
Heading to the support level at 1.37000, the decline hit the 1.37150 level in the European session before investors saw the price rebound up to 130 pips in the New York session.
Driven by the continued depreciation of the US dollar until the weekend, the Pound has managed to give a signal to resume its bullish pattern after passing the 1.38000 zone.
Investors will be wary of Pound trading this week ahead of the release of central bank focus data, namely employment data reports as well as UK inflation data.
Continuing trading earlier this week, the slow-moving price of the Asian session hovered in the latest RBS (resistance become support) zone at 1.38300-1.38000 before continuing to rise towards the opening of the European session.
The bulls are seen heading towards the resistance level at 1.39200 which was tested a few weeks ago before a higher rise to return to the 1.4000 focus level.
If the price makes a decline below 1.38000 again, the price target level will return at 1.37000 which supported last week’s price fall.
