The performance of the Pound Sterling since the beginning of the week remained gloomy until yesterday due to the uncertainty of Brexit which returned to the market's attention.
While the development of the economic recovery in the UK is increasingly positive as economic reopening measures continue with reports of 50% of the population having received at least one Covid19 vaccine injection.
However, those factors have not been enough to boost the Pound's trading this week.
The price movement on the chart of the GBP/USD pair is seen flat below the level of 1.39200 after testing the resistance level 2 days in a row but still failed to break it.
The US dollar was seen strengthening slightly in the Asian session this morning after US consumer confidence survey data rose to a 14 -month high. US treasury yields also rose above the 1.60%level.
But the US dollar’s appreciation is seen as limited as investors are cautious ahead of the FOMC meeting and US GDP data for the first quarter of 2021 to be published on Thursday.
Mixed factors for these two currencies have driven more flat price movements.
If the price manages to break the resistance of 1.39200, a higher rise will be expected for the price to return to the resistance level of 1.4000.
Next, the price will record the latest 9 -week high, possibly heading to the level of around 1.4100.
However, if the price declines, the RBS (resistance become support) zone of 1.38000 will be tested again as last week.
A lower decline in the bearish trend is seen heading towards the support zone at 1.37000 which supports the price from falling lower in March and April trading.
