Bad for GBP/USD Trading, Pound 'Stung' Virus Again - Kakiforex.com - Financial Market Media No. 1 in the World Bad for GBP/USD Trading, Pound 'Stung' Virus Again Bad for GBP/USD Trading, Pound 'Stung' Virus Again
InstaForex

June 14, 2021

Bad for GBP/USD Trading, Pound 'Stung' Virus Again

 Yes, it is certainly disappointing for UK Prime Minister Boris Johnson over the current situation that is pressing the UK economy in his plans for a full economic reopening.


Originally scheduled for June 21 to lift movement restrictions in the UK, the move had to be postponed another 4 weeks to July 5, and even if protracted could be extended further to July 19.


This is following the outbreak of the Covid-19 variant in India which is now contagious in the UK and worries health workers in the UK who are reportedly relatively ‘immune’ to the vaccine.


This is a factor that will drive the weak movement of the Pound Sterling in the market in this week's trading.




Examining the price movement on the main chart of the GBP/USD pair, it can be seen that the upside is still blocked and failed to pass the resistance zone at 1.42000.


Last Friday, the strengthening of the US dollar before closing the trading curtain last week had exhibited a rebound in addition to the volatility of the Pound’s movement.


But as in previous weeks, the support zone at 1.41000 still managed to contain the lower fall of the price after falling 90 pips from the high level around 1.41850.



Investors have received early signals for a decline after the price moved below the Moving Average 50 (MA50) support level on the 1 -hour time frame on the GBP/USD chart.


Now investors are evaluating the price reaction at the support zone 1.41000 to see if the price will be successfully supported back up or fall lower.


If the price falls past the support, with the continued decline of the Pound can push the price up to the lower support zone at 1.40000.


On the other hand if the price manages to make a rebound, the resistance zone at 1.42000 will remain the main target to be tested after a few weeks of gains made obstructed in that zone.


In addition to the FOMC meeting that will move the US dollar, investors will also be wary of UK economic data this week such as the UK jobs data report, inflation data and even retail sales data that will affect the movement of the Pound.