InstaForex

August 19, 2021

Towards the Weekend, GBP/USD Slips More

 The price movement on the GBP/USD currency pair chart on Thursday showed a lower decline in the Asian session after yesterday’s UK inflation data was published with a declining figure.


However, on Wednesday's movement, the price was more flat to test the SBR (support become resistance) zone of 1.38000 and also the Moving Average 50 (MA50) resistance level in the 1 hour time frame of the price movement.


UK inflation data is seen to add pressure on the Pound’s movement after a UK jobs data report published on Tuesday failed to stimulate the Pound’s strengthening despite good data readings.




Simply making a price correction, the decline continued in the Asian session this morning as market risky sentiment prompted the US dollar to strengthen again after the FOMC meeting minutes report earlier this morning gave a temporary weakening reaction to the US dollar.


The price declines towards the focus level of 1.37000 and it is possible that the price may fall lower from that level towards the support zone of 1.36000.



The decline to the zone will also mark the latest 4 -week low on the GBP/USD chart.


For a bullish rebound situation, the SBR zone of 1.38000 will be re -tested before investors assess the change in price trend.


A successful price jump past the zone will head back to the previous SBR zone of 1.39000 and further to the focus resistance zone at 1.40000.