The pound sterling managed to record a strengthening earlier in the week against the US dollar even though banks in the UK are still on holiday.
Interesting action was displayed on the chart of the GBP/USD currency pair yesterday when it recorded a daily jump of around 130 pips to regain profit after the price drop at the end of last week.
The price increase was more driven by the depreciating factor of the US dollar which failed to maintain its strengthening momentum for early trading of the week.
While investors remain wary of the Pound's risky trading ahead of England's central bank policy meeting this week.
The price on the GBP/USD chart managed to jump yesterday from the RBS (resistance become support) zone of 1.38000 to the high of 1.39300.
The surge has also broken the Moving Average 50 (MA50) barrier level on the 1 -hour time frame of the price movement which gives an early signal of a bullish trend again.
But until trading resumed into the Asian session on Tuesday morning, the price slightly eased back to the MA50 support level around the 1.38800 price zone.
Expectations for the price to continue rising will try to overcome yesterday’s high of 1.39300 and test the highs reached last week around 1.39700.
Next, the price will head back to the focus resistance level at 1.4000 which failed to break when tested in April trading.
If the price declines again, the RBS 1.38000 zone will return to the price focus again. The zone is expected to continue to support price increases.
If the price falls lower below that zone, the decline will be pushed up to the main support zone of 1.37000.
