In contrast to the price movement on the EUR/USD chart, the GBP/USD pair on the other hand managed to show a positive bullish pattern at the beginning of the week.
This was prompted by UK Prime Minister Boris Johnson’s announcement that restrictions on price movements were lifted on 19 July after an extension to the previous date.
While infection cases are still high, the full reopening of the economy will be implemented by removing movement restrictions including the wearing of face masks and social incarceration rules. The final decision will be made on July 12.
After the price on the GBP/USD chart surged last Thursday following the NFP report, the price continued in the Asian session this morning (Tuesday) despite the relatively slow pattern of price movement yesterday.
The positive developments in the UK have helped give a clearer signal of a bullish trend change on the GBP/USD chart after the price surged above the Moving Average 50 (MA50) support level on the 1 -hour time frame for early indicators.
The price increase is now seen to be heading to the zone around 1.39000-1.392000 to test the resistance zone before seeing a higher rise.
The continued rise will return to the SBR (support become resistance) zone of the previous focus at 1.40000.
However, investors will still need to be vigilant for the situation of falling prices again if the market's focus is redirected to central bank policy.
The decline is seen to be supported at the price zone 1.38300-1.38000 as well as the MA50 support level.
Exceeding those levels will provide an initial ideal for the price to resume the previous bearish trend.
The decline is expected to head to the focus support zone at 1.37000, recording the latest 3 -month low.
