The price movement on the GBP/USD currency pair chart eased in Tuesday’s trading after a spike earlier in the week expected a higher price increase.
However, the strengthening US dollar driven by declining factors on tech stocks in the US stock market as well as indications by Janet Yellen for an increase in interest rates in the US, have prevented price increases.
Investors are wary of the Pound’s movement this week ahead of the England central bank (BOE) policy meeting which is expected to have a big impact in the market.
Meanwhile, the Brexit issue is once again overshadowing the Pound with the latest report of the French government rejecting British waters regulations that put pressure on French fishermen.
The ongoing Brexit uncertainty will continue to be an obstacle for the Pound to continue to strengthen.
But in the Asian session on Wednesday morning, the Pound was seen again moving stronger against the US dollar.
The price on the GBP/USD chart is moving above the support level of Moving Average 50 (MA50) on the 1 hour time frame for the price signal will continue the uptrend.
The price heading towards the 1.39200 level is testing the resistance tested last Monday and investors will be examining the price reaction whether the price will continue to rise or vice versa.
If the rise is successfully continued, the resistance zone at 1.4000 will return to the bullish rebound target.
However, with the situation of strengthening the US dollar and the Pound at risk, the price is likely to fall again towards the RBS (resistance become support) zone of 1.38000.
The next lower decline will lead to the support zone in March and April trading at 1.37000.
