Watch out! GBP/USD Gives Early Hint Of Falling Price Situation - Kakiforex.com - Financial Market Media No. 1 in the World Watch out! GBP/USD Gives Early Hint Of Falling Price Situation Watch out! GBP/USD Gives Early Hint Of Falling Price Situation
InstaForex

June 4, 2021

Watch out! GBP/USD Gives Early Hint Of Falling Price Situation

 The Pound also failed to contain the price fall on the GBP/USD pair chart with the strengthening exhibited by the US dollar towards the end of the week.


Encouraging economic data readings in the United States (US) boosted investor confidence in the world's largest economic recovery.


Meanwhile the Pound’s strengthening has also begun to grim following reports of the emergence of a new variant of the Covid-19 virus which risks hampering plans to reopen the UK economy completely in the near future.




Following that, it can be seen that the bearish pattern began to appear on the chart of the GBP/USD pair again after reaching the latest 3 -year high this week.


In yesterday's trading, the bulls managed to touch the resistance level of 1.42000 before investors saw the price plummet until the end of the New York session retesting the price support zone at 1.41000.


Similar to the situation 2 weeks earlier, the zone managed to withstand the fall in prices to lower levels. Prices moving slowly around that continued in the Asian session on Friday morning.



Investors are preparing for further price decline after the bearish trend change signal of the price moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the GBP/USD chart.


A lower decline is expected towards the support level at 1.4000 which is in the RBS zone (resistance become support).


The decline reached the zone is the lowest price level for the 3 -week trading period.


However, if the price manages to resume its previous rise, the resistance zone of 1.42000 will be re -tested before the price continues the bullish trend.


For higher rises beyond the zone, the latest high target level is around the resistance of 1.43000.