InstaForex

August 24, 2021

Excellent Early Week Trading, GBP/USD Soared 120 Pips!

 Signaling for a trend change, the price on the GBP/USD currency pair chart yesterday has recorded a daily jump of around 120 pips to bounce back after the decline was exhibited last week.


The Pound is seen as still risky as well as economic data for the UK manufacturing and services sectors published yesterday is somewhat mixed.




However, prices managed to soar due to the re-depreciation factor of the US dollar earlier in the week with concerns over the contagion of the Delta variant Covid-19 has slowed calls by Federal Reserve (Fed) members for the implementation of bond purchase reduction measures (tapering).


The situation has prompted a rebound on the GBP/USD chart from the support zone of 1.36000 to pass the resistance of 1.37000.


It is expected that the 1.37000 zone will support the price movement today, a higher price increase will test the SBR (support become resistance) zone of 1.38000 after the price plunged below the zone last week.



The next rise will target the level around 1.39000 to be the price pull on the bullish trend movement.


On the other hand, if the price falls again below the 1.37000 zone, the decline is likely to once again test the 1.36000 support zone like last week's situation.


And if the price plunges lower to continue the previous bearish trend, the level is around 1.35000 as the latest support level to be tested.