Positive Developments In The UK Fail To Curb GBP/USD Decline - Kakiforex.com - Financial Market Media No. 1 in the World Positive Developments In The UK Fail To Curb GBP/USD Decline Positive Developments In The UK Fail To Curb GBP/USD Decline
InstaForex

June 3, 2021

Positive Developments In The UK Fail To Curb GBP/USD Decline

 Developments in the UK remained positive with the intensified vaccination program driving a drop in cases of infection as well as for the first time the UK recorded zero deaths since the Pandemic began.


UK Prime Minister Boris Johnson remains optimistic about the implementation of the UK economic opening and is confident that the economy will be fully operational by June 21.


However, such positive factors still failed to support further strengthening of the Pound Sterling against the US dollar towards the end of this week.




On the chart of the GBP/USD pair, after the price passed the resistance zone of 1.42000 and recorded the latest high level almost around 1.42500 on Tuesday, the decline was again exhibited until the European session yesterday.


Investors saw the US dollar strengthen slightly in the European session yesterday before declining again in the New York session. The movement of the US dollar remained turbulent while investors were wary ahead of the US NFP jobs data report on Friday.


The decline made hit the 1.41100 level which is seen as the price support zone over the past 2 weeks.


However, the price rebounded around 70 pips in the New York session and tested the Moving Average 50 (MA50) resistance level on the 1 hour time frame of the price movement on the GBP/USD chart.



The slow price movement continued in the Asian session on Thursday morning still hovering at the MA50 level making investors more cautious after the initial signal of a bearish trend.


The continued decline will once again test the 1.41000-1.41000 support zone. Investors will evaluate the price reaction in this zone for further movement signals.


If the breakout price is lower, the price will be pushed to the lower support level at 1.40000 which is in the main RBS (resistance become support) zone.


However, if the price manages to return to the bullish rhythm past the resistance of 1.42000, the high reached this week may be able to be overcome before the next rise is expected to head to the level of 1.43000.


That level is the price resistance level in January and April 2018 trading. Reaching that high level will record the latest 3 -year price high.