InstaForex

August 17, 2021

GBP/USD Declines To $ 1.3800 Support Zone Ahead of UK Jobs Data Report

 The price movement on the chart of the GBP/USD currency pair that continues until today is seen to remain in the range of 100 pips between the $ 1.3800 and $ 1.3900 levels entering the sixth consecutive day.


While investors are wary of UK economic developments affecting the Pound, price movements are seen to be more driven by changes in the value of the US dollar in the market.


The UK employment data report will be published at the start of the European session shortly and is expected to influence the movement of the Pound today.




After the price on the GBP/USD chart jumped from the 1.3800 support zone last Friday, the rise failed to continue following market risk-off sentiment saving the US dollar from further depreciation earlier this week.


The price failed to make a rise to the level of 1.19000 instead slipped back to the support level of Moving Average 50 (MA50) in the 1 -hour time frame with the expectation that the level will rebound the price today (Tuesday).



On the other hand the price slipped lower in the Asian session trading this morning below the MA50 level for a bearish signal of the price again.


The decline returns to the support zone of 1.38000 and if the price manages to break lower, the next target is to the zone around 1.37000 for the price to record the latest 4 -week low.


However, if the price jumps back past the SBR (support become resistance) zone of 1.39000, a higher price increase will be expected towards the focus resistance zone at 1.40000.