August 30, 2021

GBP/USD Jumped 100 Pips, Will It Continue To Rise This Week?

 The price chart of the GBP/USD pair saw a jump of 100 pips last Friday to record the highest level of the week following the re -depreciation factor of the US dollar.

The strengthening of the U.S. dollar on the previous Thursday failed to be sustained when a statement by Federal Reserve (Fed) Chairman Jerome Powell at the Jackson Hole economic conference over the weekend was delivered in a dovish tone.

This situation has again prompted a rebound on the GBP/USD chart despite the absence of strong factors supporting the Pound in the near term.

The price is seen rebounding from the level of 1.36800 past the level of 1.37000 and reaching a high of around 1.37800 at the end of last week's trading session.

The jump above the Moving Average 50 (MA50) support level on the 1 -hour time frame also signals for a bullish movement of the price again.

But investors will be more cautious to trade the US dollar this week ahead of the US NFP jobs data report to be published on Friday.

The price increase is seen to test the SBR (support become resistance) zone of 1.38000 and the price reaction in that zone will be evaluated by investors for further indication of movement.

The higher rise beyond the zone is expected to lead to the resistance zone at 1.39000 which is also an important price zone since last July's trading.

Meanwhile, if the price plummets again this week, the 1.37000 zone will be tested again as a support level for the price.

The lower decline pushed the price expectation to decline back to the previous major support zone at 1.36000.