August 13, 2021

Died Over The Weekend, GBP/USD Fall Back

 UK Gross Domestic Product (GNP) data for the second quarter published in the European session yesterday was seen as failing to strengthen the Pound’s movement in the market.

The initial reading for GDP growth was in line with the forecast to record an increase in the reading to 4.8%.

However, co-published UK economic data such as data on industrial production and manufacturing as well as the trade balance of goods, showed a less encouraging reading.

It can be seen that the price on the chart of the GBP/USD currency pair for Thursday's trading yesterday plunged back after the surge of the previous day.

The sharp decline in prices was also combined by the re -strengthening of the US dollar after the US producer price index data was published well yesterday.

The price dropped again to test the 1.38000 support zone after the zone failed to be broken last Wednesday.

Investors will first wait for the price reaction in this 1.38000 zone for further price movement signals.

If the price falls below 1.38000, it will give a bearish signal of the price for a lower decline with the expectation towards the level around 1.37000 or even lower at the support zone 1.36000.

For the bullish situation, the SBR (support become resistance) zone at 1.39000 will continue to be tested. The zone is seen to have managed to curb price increases throughout the week.

A higher rise past the SBR zone of 1.39000 will push the price to the resistance zone of the 1.40000 focus.