In contrast to the Euro which managed to absorb pressure on the US dollar, the Pound Sterling showed a sluggish performance earlier this week.
The pound failed to find its strengthening momentum ahead of the Bank of England (BOE) monetary policy meeting on Thursday despite the UK economic data that was the focus of last week’s published positive.
On the price chart of the GBP/USD pair yesterday saw the price continue the lower decline continuing the bearish trend.
The support zone at 1.37000 failed to contain the lower fall of the price until the price hit the latest 4 -week low of 1.36400 in the New York session yesterday.
Prices then moved horizontally around the zone and a slight increase was seen in trading continuing into the Asian session this morning (Tuesday).
The rise is seen to be stopped at the resistance of 1.37000 before the continued decline will decline lower towards the support zone of 1.36000.
The support zone was previously the focus of the price drop last August, but the price was successfully supported to make another jump.
But will the situation be repeated or will the price break even lower to record the latest lows again this week?
If the price manages to rebound past the resistance of 1.37000, passing the barrier of Moving Average 50 (MA50) on the 1 -hour time frame will also give an indication for a reversal of the bullish trend.
The continued rise will test the focus level of 1.38000 in the SBR (support become resistance) zone before.
