The price chart of the GBP/USD pair last week managed to show a bullish pattern although the Pound still remains risky. Will the upward momentum be sustained this week?
The rise in prices was further driven by the factor of the depreciation of the US dollar towards last weekend’s trading.
This week, the focus will be on the results of the FOMC meeting which will signal the direction of the next price movement.
In addition, investors will be monitoring the development of the UK economy following last week’s economic reopening move which is expected to support recovery amid a returning pandemic.
The Pound remains overshadowed by risks in the market and investors are wary of the Pound’s devaluation situation at any time.
If a decline occurs on the GBP/USD chart, the initial support level at 1.37000 will be tested first before the continued decline will return to last week’s support level around 1.36000.
For a lower decline beyond that level, the 1.35000 support zone will be the price’s next target to record the latest lows since last January’s trading.
Yet if the price manages to continue last week’s bullish pattern, the resistance zone at 1.38000-1.38300 will be retested.
The price that managed to break the zone is expected to go to the focus resistance zone at 1.39000 after the rise throughout July still failed to break the zone.
