GBP/USD Fall Successfully Stopped, What Next? - Kakiforex.com - Financial Market Media No. 1 in the World GBP/USD Fall Successfully Stopped, What Next? GBP/USD Fall Successfully Stopped, What Next?
InstaForex

June 11, 2021

GBP/USD Fall Successfully Stopped, What Next?

 The fall in the GBP/USD chart was curbed yesterday as prices rebounded following the weakening of the US dollar in a market that reacted to the release of US inflation data.


Previously, the 1.41000 level was seen as a support level for the price after successfully supporting the price increase during the decline for 2 consecutive weeks before this.


The same situation occurred yesterday when the price decline initially returned to support the price from the support zone of 1.41000.


The price drop was initially driven by the uncertainty of the Brexit issue which hit the UK again with talks between UK Brexit Minister David Frost and European Commission Deputy President Maros Sefcovic failing to find a word of agreement.


At the same time, Pound trading was also stressed by economic developments in the UK which will face a postponement of the full economic opening date scheduled for June 21, with the rate of Covid-19 infection cases rising.


Following the depreciation of the US dollar in the New York session after the inflation data was published, the price has rebounded on the GBP/USD chart rising past the Moving Average 50 (MA50) barrier level in the 1 -hour time frame of the price movement.



However, if observed for 4 weeks the price has been moving in the consolidation zone between the resistance level of 1.42000 and the support level of 1.41000.


The price increase until the end of this week is still below the resistance level of 1.42000 and the price needs to break the zone if it wants to give a clearer signal of a price increase.


The higher upside expectation is heading to the level around 1.43000 which was the resistance during last April 2018 trading.


If the decline occurs again and the 1.41000 zone has failed to support the rise again, the price will head to the lower support level around the 1.40000 level which is in the RBS zone (resistance become support).