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June 29, 2021

GBP/USD Shows Slow Declining Pattern

 The pound sterling remained in the category for continued risky currency trading earlier this week after the pressure of England’s central bank’s dovish statement at last week’s policy meeting.

The new UK Health Minister, Sajid Javid, who replaces Matt Hancock, expressed his confidence that the movement restriction would be lifted on July 19 as there was no reason for the government to extend it further.

Although the news provided a positive element, the development of Covid-19 transmission in the UK is still in a worrying state.

The largest daily case of infection was reported on Monday in 5 months in the UK indicating the risk of transmission is still high.

If the price movement on the chart of the GBP/USD currency pair is examined, the price showed a rise in the European session yesterday. However, the rise was only able to hold on to the level around 1.39400 before making a decline again.

Continuing trading in the New York session yesterday the price slipped back below the 1.39000 level and moved back below the Moving Average 50 (MA50) barrier on the 1 hour time frame for a bearish trend signal.

The decline continued in the Asian session on Tuesday morning but the price movement was seen to be slow.

The support zone at 1.38000 is seen to be the focus for the price decline that will continue today.

If the decline manages to break the support of 1.38000, the price will record the latest 11 -week low with the expectation of heading to the lower support zone at around 1.38000.

For the bullish situation, a higher rise above yesterday's level is likely to lead to the 1.40000 resistance in the SBR zone (support become resistance).

Next, the continued rise will head to the higher SBR zone at 1.41000 for a clearer bullish trend.