GBP/USD Gives Early Signals To Jump Higher - Kakiforex | Forex markets for the smart money. GBP/USD Gives Early Signals To Jump Higher GBP/USD Gives Early Signals To Jump Higher

April 13, 2021

GBP/USD Gives Early Signals To Jump Higher

 Investors saw a rebound in the Pound Sterling earlier this week after moving weakly over the past week amid investor concerns over a case of blood clotting side effects of AstraZeneca vaccine injections.

The Pound’s surge earlier this week was driven by factors of the reopening of the UK economy after the implementation of previous movement restrictions to curb the spread of Coronavirus.

Investors reacted positively to the reopening of the UK economy but analysts warned to monitor further developments as it was too early to predict a rapid economic recovery.

On the price chart the GBP/USD pair is back giving an early signal for the beginning of the bullish trend again after a series of price declines last week.

In yesterday's trading, the price hovered at the support level of 1.36700 which was also hit last Friday, rebounded and passed the Moving Average 50 (MA50) barrier in the 1 -hour time frame.

The SBR (support become resistance) zone of 1.37300 was broken before the price reached a high of around 1.37750 overcoming last Friday's high before closing trading around 1.37300 again which changed its function as RBS (resistance become support).

The price movement in the Asian session on Tuesday slowly hovered in the RBS zone with the MA50 level will be support for the price to resume the surge.

The higher price increase will head back to the SBR zone 1.38000-1.38300 which was the focus last week.

However, investors need to be vigilant if the US dollar strengthens again in the market and presses prices lower again.

The decline beyond the level of 1.37000 and the support level of 1.36700, the price is seen to go up to the level of 1.36000 to test the support zone in February.

The focus will also be on the UK's monthly Gross Domestic Product (GDP) report which will be published in the European session this afternoon.