Already Entered the 3rd Week The $ 1,4200 Wall Still Failed to Break - Kakiforex.com - Financial Market Media No. 1 in the World Already Entered the 3rd Week The $ 1,4200 Wall Still Failed to Break Already Entered the 3rd Week The $ 1,4200 Wall Still Failed to Break
InstaForex

May 31, 2021

Already Entered the 3rd Week The $ 1,4200 Wall Still Failed to Break

 The intensified Covid-19 vaccine immunization campaign in the UK has prompted movement restrictions to begin to be gradually loosened.


Continuing to provide positive developments, the UK economy is expected to fully resume operations in the near term.


This factor boosted investor confidence and saw a positive movement for the Pound Sterling currency in the trading period of recent months.




As assessed on the chart of the GBP/USD pair, after a significant decline in March 2020 reached the level of 1.14000, the price has managed to show a continuous upward pattern and until May 2021 the price has managed to reach the price level of 1.42000.


The 1.42000 level is now a difficult resistance zone to break after being tested throughout May and also failed to break in last February's trading.


For the last 2 weeks, the price is moving in the range of around 100 pips with the support level at 1.41000 and the resistance level at 1.42000.


With the Pound expected to continue to strengthen against the US dollar, the price will need to overcome the resistance of 1.42000 before the latest rise is projected towards the high of around 1.43000.



If the price reaches that level, this is the highest price the price has ever reached since April 2018.


Yet investors need to be wary of bearish situations after the 1.42000 resistance zone still fails to break the price.


Even a temporary strengthening of the US dollar could be an early indication for the US dollar to make a ‘comeback’ again and push prices back to lower levels.


For the downside, the support level at 1.41000 will be tested again after 2 weeks of successfully supporting the upside again when the price drops to this level.


Next, a successful continued decline will lead to a lower support level at around 1.4000 which is in the RBS zone (resistance become support).


Investors will be wary of price movements this week ahead of the US NFP jobs data report which will be the main focus event.