Risk Pound, GBP/USD Plunges 120 Pips! - Kakiforex.com - Financial Market Media No. 1 in the World Risk Pound, GBP/USD Plunges 120 Pips! Risk Pound, GBP/USD Plunges 120 Pips!

April 24, 2021

Risk Pound, GBP/USD Plunges 120 Pips!

Towards the end of the week, the Pound Sterling continued to show a decline after focused economic data failed to support the strengthening of the British currency.


The price movement on the chart of the GBP/USD currency pair is seen to make a decline again after a significant surge in the price at the beginning of the week reached the resistance level of 1.40000.


The price moving back below the Moving Average 50 (MA50) barrier level in the 1 hour time frame of the price movement also signals for a lower price decline.


As in Thursday's trading, the price tested the MA50 barrier before plunging around 120 pips to the RBS (resistance become support) zone of 1.38300 again.


In addition to pressure by the strengthening US dollar, the fall in prices was also impacted by reports that the European Commission is preparing to take legal action against vaccine company AstraZeneca for failing to meet total vaccine dose deliveries as previously contracted.


The concerns also prompted a sharp depreciation of the Pound which made investors more cautious.





But in today's Asian session, the price rose slightly from the level of 1.38300 with a weak movement.


The decline is expected to be lower but the RBS zone 1.38300-1.38000 still needs to be tested and penetrated.


Prices that manage to pass the zone are seen to head back to the support zone at 1.37000 is likely to continue trading in the next week.


The rally is seen to test the 1.39000 level before the continued rise tests the 1.4000 resistance level which has failed to break since March trading.