The price movement on the chart of the GBP/USD currency pair clearly displays a continued bearish pattern in Tuesday's trading yesterday as the Pound Sterling is still plagued by weak sentiment.
In addition to the Brexit uncertainty over the Northern Ireland protocol, the development of Covid-19 transmission in the UK is still at an alarming level.
Investors are awaiting indications as to whether the economic opening on July 19 is feasible or whether movement restrictions will be extended for a longer period.
With the UK economic pressure, the value of the Pound continued to depreciate against the US dollar with yesterday's decline on the GBP/USD chart reaching the support zone of 1.38000-1.38300.
However, the zone still managed to contain the lower decline with the price rebounding to move slowly above the zone continuing the Asian session trading this morning (Wednesday).
The strengthening of the US dollar in yesterday's trading is also seen to push today's price decline to pass the lower level below 1.38000.
If the price manages to fall lower, the support zone at 1.37000 will be the target for the latest price decline.
On the other hand if the price manages to rebound, the resistance zone around 1.3900-1.39200 will be tested again like the situation at the beginning of the week.
The rise that successfully passes the zone will lead to the previous focus resistance zone of 1.40000 which was reached on last week's rise.
While awaiting the US NFP employment data report on Friday, investors will also scrutinize UK economic data such as the final reading of UK GDP for the first quarter in today’s European session which will influence price movements.
