InstaForex

August 26, 2021

After ‘Resting’ At The Level Of $ 1.3700, GBP/USD Continues To Rise

 The price movement on the chart of the GBP/USD currency pair was seen continuing to rise to higher levels in the New York session yesterday after moving flat since last Tuesday.


Rising prices are more influenced by the movement of the US dollar against the Pound.


Despite factors supporting the US dollar, it still failed to strengthen the value of the US dollar following expectations of Federal Reserve (Fed) Chairman Jerome Powell's dovish remarks by investors on tapering at the annual Jackson Hole event over the weekend.




After the price jumped from the support zone of 1.36000 last week, the bulls have passed the level of 1.37000 which later became the latest support level of the price.


Having flattened above the 1.37000 level, the price is seen continuing its rise in the New York session yesterday to a higher level this week around 1.37650 at the end of the session.



With the bullish signal the price is still moving above the support level of Moving Average 50 (MA50) on the 1 hour time frame is seen to continue rising towards the SBR zone (support become resistance) 1.38000.


The price increase that passes the SBR zone of 1.38000 will lead to the focus zone of 1.39000 which was the resistance last week.


Meanwhile, for the bearish situation, the level of 1.37000 remains the nearest support level which is expected to be able to curb the fall in lower prices.


However, if the price continues to decline, the 1.36000 support zone will once again be tested and a lower decline below that zone will record the latest 7 -month low.