InstaForex

August 25, 2021

GBP/USD Began To Flat After A Surge At The Beginning Of The Week

 In contrast to the gains displayed on Monday, the price on the chart of the GBP/USD currency pair on Tuesday yesterday moved more flat.


The gloomy economic development in the UK has no impact on the movement of the Pound in the near term.


On the other hand, the price movement on the GBP/USD chart was more driven by the change in the value of the US dollar which was seen weakening at the beginning of the week.




After the price plunged to the support zone of 1.36000 last week, the price started to rebound earlier this week to pass the level of 1.37000.


But expectations for the price to continue to rise yesterday faltered when investors simply saw the flat price hovering above the 1.37000 level.


Even so, there are still bullish signals following the price moving above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the GBP/USD chart.



A weak decline early in the Asian session this morning (Wednesday) is likely to test the MA50 support as well as the 1.37000 level for investors to assess the price reaction.


If the price manages to resume rising, the SBR (support become resistance) zone of 1.38000 will be the target to be tested.


If it fails to release the zone, it will return to make another descent. On the other hand, if the price manages to break to higher levels, the 1.39000 level will be the price attraction.


However if the price plunges again below the 1.37000 zone, the 1.36000 support zone will once again be tested for 2 consecutive weeks.


A lower drop below that level will mark the latest low since January trading.