Expectations Failed, GBP/USD Back Down - Kakiforex.com - Financial Market Media No. 1 in the World Expectations Failed, GBP/USD Back Down Expectations Failed, GBP/USD Back Down
InstaForex

June 2, 2021

Expectations Failed, GBP/USD Back Down

 Expectations for a higher price increase on the GBP/USD currency pair chart were dampened by the re -strengthening of the US dollar during yesterday’s New York session which again pushed the price down again.


The ISM survey data of the manufacturing sector in the United States (US) recorded an increase of 61.2 points, beating the expected 60.8 increase published in the New York session while the final reading of the manufacturing PMI data in the UK was slightly lower.


After investors saw the price make a rise past the resistance zone of 1.42000 at the beginning of the week, the price has reached its latest high level at almost 1.42500.


However, the price has slipped again falling below the 1.42000 level back to hit a low at the end of the New York session around 1.41500.


This situation makes investors back on alert with the bearish trend change signal of the price after the price has also moved below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart.


But it is too early to assume a fall in prices due to developments in the UK is still positive.


The UK reported zero deaths from Coronavirus infection within 24 hours for the first time since the Pandemic began. In fact, the Prime Minister of the UK also stated that the move to reopen the economy will not be delayed.



If the Pound moves back stronger again, investors expect to see the price re -break the resistance zone of 1.42000 after several weeks of sweating at that concentration level.


The next bullish target remains seen at the 1.43000 level for the record highest price since April 2018.


If the decline continues, the support level of 1.41000 in the RBS (resistance become support) zone will be tested and investors will assess whether the level is still able to support the rise again as in previous weeks.


The lower decline is seen to be heading to the next RBS focus zone at 1.40000.