Despite risky sentiment, the Pound Sterling remained ‘steady’ to rise in early week trading as the UK approached the period of economic reopening.
While still haunted by concerns about the spread of Covid-19, Prime Minister Boris Johnson is expected to confirm plans to end movement restrictions in England on July 19.
The pound is seen to be able to move steadily against the US dollar if observed on the chart of the GBP/USD currency pair after an energetic surge at the close of trading last week.
The rise was however restrained in the SBR (support become resistance) zone of 1.39000-1.39200 in early trading yesterday.
The European session yesterday saw prices drop to the 1.38400 level as the US dollar showed a strengthening. However, the re -depreciation of the US dollar pushed the price back to the level of 1.39000.
The zone became the focus of prices until trading resumed in the Asian session on Tuesday morning with slower price movements.
Movement above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the GBP/USD chart also signals a bullish trend of the price.
Investors are waiting to see if the price will be able to pass the SBR zone 1.39000-1.39200 to provide a clearer direction of price movement with the latest target being towards the 1.40000 zone.
On the other hand, if the zone remains blocking the haga increase as in previous weeks, the price is likely to fall back below the 1.38000 level.
The lower decline is seen to test last week's support level around 1.37400 before heading to the 1.37000 support zone.
