In contrast to the Euro, although the US dollar moved weak yesterday, the Pound Sterling failed to capitalize on the opportunity to rise and even depreciate lower until the end of the New York session.
This is due to concerns over the UK's economic downturn which is supposed to be fully operational on June 21 as the new Covid-19 Delta variant in the UK is believed to be 60% higher in spread than the previous Alpha.
The UK reported over 7,500 cases in a 24 -hour period, the highest daily case increase rate since 17 February.
The price chart of the GBP/USD pair yesterday was seen failing to continue rising to retest the resistance level at 1.4200 before a more significant decline was exhibited in yesterday’s New York session.
The price has returned to move below the Moving Average 50 (MA50) barrier level on the 1 hour movement of the price which gives an early signal to investors for a lower decline.
The price dropped almost to the level of 1.41000 which was the support zone for the previous price. The zone has managed to support the price making a rebound in 3 consecutive trading weeks.
However, if the price falls lower beyond that zone, the support level at 1.4000 will be the focus of the price in the RBS zone (resistance become support).
If the price returns to the rise, the resistance zone of 1.42000 will continue to be tested again before the price continues to rise higher.
The next bullish target level is seen at the high of around 1.43000 which is seen as the resistance zone tested in April 2018 trading.
