Until the end of the week, the price on the chart of the GBP/USD pair is seen to remain moving in the 100 pips zone of the price with resistance at the level of 1.39000 while the support level at 1.38000.
Both the US dollar and Pound Sterling failed to dominate each other as they each faced different pressures.
The US dollar was seen recovering slightly over the weekend after being affected by Federal Reserve (Fed) Chairman Jerome Powell's dovish statement signaling to maintain a loose policy for longer as well as impacting the US dollar's depreciation in the market.
Meanwhile, the Pound is looking forward to the reopening of the UK economy next week despite still facing the risk of Covid-19 contagion.
On the GBP/USD price chart yesterday, the price once again made a rise in the European session to the resistance level of 1.39000 before plunging back to the support level of 1.38000 in the New York session.
Prices moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame can be an early indication for a lower price decline.
If the price drops below the 1.38000 level, a lower decline will be expected to last week’s support level around 1.37400 before heading to the key support zone at 1.37000.
The 1.37000 zone still remains an important zone supporting the price rebound like the price declines that took place in March and April last year.
For a bullish situation, the resistance zone 1.39000-1.39200 still needs to be broken before the price gives a clearer signal for a bullish trend.
The next increase is seen to return to the focus resistance level at 1.4000 which is in the SBR zone (support become resistance).
