July 22, 2021

GBP/USD Bounces Back, Early Signal For Bullish Trend Again?

 Expectations for the price on the chart of the GBP/USD currency pair continued to plummet as investors watched the price rebound in the New York session yesterday.

After the price tested the support level of 1.36000 for 2 consecutive days, the price failed to break lower and made a rebound of more than 100 pips past the level of 1.37000.

The rise in prices was seen to be more driven by the re -depreciation factor of the US dollar which was influenced by market sentiment which slightly recovered although the Pound was still trading risky.

The rally has also passed the Moving Average 50 (MA50) barrier on the 1 -hour time frame of the price movement on the GBP/USD chart giving an early signal for a bullish trend change.

Continuing the Asian session this morning (Thursday), the price is moving slowly around the 1.37000 level and is expected to be more aggressive in the European and New York sessions soon.

If the price increase is successful, the SBR (support become resistance) zone of 1.38000 is seen to be the focus for price testing.

A higher rise could re -reach the resistance level at 1.39000 which was the focus of the previous week’s trading.

However, if the rise is just a price correction, the price decline will again test the 1.36000 support.

A lower decline through that level will lead to the next support level at 1.35000 while recording the latest low since February.