Is the pound sterling still considered risky by investors? Let's take a look at the factors that influence the British currency.
The development of a positive vaccination program driving the decline in the number of Covid-19 cases in the UK also supported the sentiment of the reopening of the UK economy a few weeks ago.
Moreover, concerns over the Brexit issue that have eased slightly added support for the Pound’s excellent movement last week particularly against the US dollar.
The focus is now shifting to the monetary policy meeting of the central bank of England (BOE) on Thursday making investors remain wary of Pound trading earlier in the week.
On the chart of the GBP/USD currency pair, the price movement is more flat and is seen failing to continue the series of gains last week.
Expectations for the price to reach the high of 1.40000 are getting harder as the price starts falling again below the Moving Average 50 (MA50) barrier level on the movement in the 1 hour timeframe for a bearish signal.
The price continued its horizontal movement yesterday until the Asian session this morning (Tuesday) around the support level of 1.39000.
The lower price decline is seen heading to the RBS (resistance become support) zone at 1.38000 after the price managed to jump above that level in early trading last week.
If the decline continues, the next focus level is seen at 1.37000 as well as last week’s support level at 1.36000.
However, if the 1.39000 zone manages to re -support the rise, the bullish target will return to the 1.40000 resistance zone which failed to be reached last week.
Passing the resistance will record the latest highs of the price for the 7 -week trading period possibly heading towards the level around 1.41000.
