The price movement on the chart of the GBP/USD currency pair continued to rise at the market opening this week to maintain the momentum of the price surge last Friday after the market reaction to the US NFP jobs report.
A far more disappointing -than -expected report reading has seen the US dollar depreciate significantly opening a wider path for other major currencies to rise including the Pound.
The price has jumped from the level of 1.38900 to the target level of 1.40000 which is a resistance zone that failed to be broken after being tested since the beginning of March.
The Asian session this morning saw the price move further higher above the 1.40000 resistance level and as of the beginning of the European session opening, the price has reached the level of around 1.40500.
The higher rise is expected to head to the 1.41000 high to record the latest 3 -month high.
But investors need to be wary of the Pound’s devaluation situation this week following market concerns after the Scottish election.
The victory was in favor of the SNP party which had previously promised to hold a new referendum and the situation would add to the pressure on Pound Sterling trading.
In addition, the Brexit uncertainty factor is also seen to make the Pound among the risky currencies this week.
It is likely that investors will see the price plunge back below the 1.40000 level and return to last Friday's surge level.
For the bearish trend of the price again, the RBS (resistance become support) zone at 1.38000 will be the main target which will be re -tested by the price.
UK Gross Domestic Product (GDP) growth data for the first quarter to be published this week is also a focus that will affect the movement of the Pound.
