GBP/USD Continued Decline Into Support Zone Last Week - Kakiforex.com - Financial Market Media No. 1 in the World GBP/USD Continued Decline Into Support Zone Last Week GBP/USD Continued Decline Into Support Zone Last Week
InstaForex

July 1, 2021

GBP/USD Continued Decline Into Support Zone Last Week

 The Pound Sterling continued to meet expectations to continue depreciating throughout the week.


Brexit uncertainty is again seen hovering again adding pressure on Britain in resolving their trade ties after withdrawing from the European bloc.


However, the current focus is the spread of the Covid-19 variant of Delta which is seen to affect the UK economic reopening plan on 19 July. The dire situation is likely to push the government to continue to extend restrictions on movement as well as being a major factor in the Pound’s depreciation.




On the price chart of the GBP/USD pair, the price continued its downward trend which was also driven by the strengthening of the US dollar yesterday to end June trading.


The price rose slightly in the European session yesterday to the level around 1.38700, but failed to pass the Moving Average 50 (MA50) barrier in the 1 -hour time frame before the price resumed the decline in the New York session to the support zone of 1.38000.


Prices closed above that level before the flat resumed in the Asian market session on Thursday morning, but a decline in prices is still expected.



The decline is seen to head to the support zone of 1.37000 if the US dollar manages to maintain pressure on the Pound ahead of the NFP report.


Investors also want to see if the downturn can penetrate the zone after the failure of prices to do so during the downturn in March and April.


However, if the 1.38000 support zone manages to re-support the upside and passes the MA50 barrier, the upside will be expected to head back to the resistance zone around 1.39000-1.39200.


For a successful higher rise to continue, the focus resistance zone at 1.4000 will be retested.