The refocus on discussions by Federal Reserve (Fed) members for a reduction in asset purchases became a barrier to the bullish momentum on the GBP/USD currency pair’s chart last weekend.
If observed the price has made a rise to the latest high reaching the level of 1.42300 which is the resistance tested in last February's trading.
In addition to talks for a tapering move by the Fed, last Friday’s New York session saw the release of rising U.S. manufacturing and services PMI data pushed prices back to a decline of around 90 pips after the previous session’s gains were driven by readings of economic sector data. same in the UK.
Therefore, the 1.42000 zone remains a resistance zone for the price that needs to be passed before the price continues to record its latest 3 -year high.
Analysts still see price movements on the GBP/USD chart in a bullish trend, but remain vigilant for signals of price trend change.
Developments in the UK, Prime Minister Boris Johnson remains confident that the UK is heading towards full economic reopening by the end of June.
This will push expectations for a price increase towards the target of 1.43000 which is a resistance zone that was once tested in January and April 2018, but failed to break it.
As for the bearish situation, last week's support level at 1.41000 will be tested before the lower decline will lead to the RBS (resistance become support) zone of 1.4000.
