Pound Failed to Dam Dominance of US Dollar, GBP/USD Show Bearish Price Pattern - Kakiforex.com - Financial Market Media No. 1 in the World Pound Failed to Dam Dominance of US Dollar, GBP/USD Show Bearish Price Pattern Pound Failed to Dam Dominance of US Dollar, GBP/USD Show Bearish Price Pattern
InstaForex

August 11, 2021

Pound Failed to Dam Dominance of US Dollar, GBP/USD Show Bearish Price Pattern

 Consistent with the forecasts of market analysts, the price movement on the chart of the GBP/USD currency pair exhibited a bearish pattern this week after moving horizontally around the 1.39000 price zone over the past week.


The pound sterling was seen failing to curb its dominance by the US dollar after the US NFP jobs report published strong on Friday.


In addition to the US inflation data that was the focus of the New York mala mini session, investors were also wary of Pound trading ahead of the UK Gross Domestic Product (GDP) data for the second quarter to be published on Thursday.




The price falls below the 1.39000 zone and moves below the Moving Average 50 (MA50) barrier level on the 1 hour time frame signaling a bearish movement of the price.


The decline is seen heading towards the RBS (resistance become support) zone of 1.38000 after the price jumped above that level in trading at the end of July.



The continued lower decline of the price is likely to reach up to the level of 1.37000 this week if the US dollar manages to maintain the strengthening momentum on the Pound.


On the other hand, if the price rebounds, the SBR (support become resistance) zone of 1.39000 will be re -tested for further price movement signals.


A higher jump past the SBR zone will push the price upwards towards the resistance zone at 1.40000.