InstaForex

August 16, 2021

Pound Traders Relieved After Initial Signals of GBP/USD Bullish Movement

 On the GBP/USD chart, the price is seen rebounding from the support zone of 1.38000 in last weekend's trading.


The bullish situation was driven by the depreciation of the US dollar following data from the US consumer confidence survey published in the New York session last Friday, which fell to its lowest level in 10 years.


This has prompted a rebound in prices even though the Pound’s performance was not very encouraging after the preliminary UK Gross Domestic Product (GDP) report for the second quarter was published rising in line with forecasts.


For this week, a UK employment data report will be published on Tuesday which will be the focus for Pound traders.


After rebounding from the support zone of 1.38000, the price has passed the barrier of Moving Average 50 (MA50) on the 1 hour time frame of the price movement to return to give a bullish signal again.


The market opening earlier in the week today saw price declines take place since the Asian session continued into the beginning of the European session.



However, analysts expect the price to continue rising to test the resistance level of 1.39000 in the SBR zone (support become resistance).


A higher rise past the zone will then continue the rise towards the resistance zone at 1.40000.


But if the price plummets again, the support zone of 1.38000 will continue to try to break the price before the price heads to the lower focus levels around 1.37000 or the support of 1.36000 to record the latest low of several weeks.