Once again the bullish expectation on the chart of the GBP/USD currency pair matched the analysts ’forecast to reach the resistance zone of 1.39000 in last weekend’s trading.
While the Pound is seen trading under pressure, the continued depreciation of the US dollar has pushed prices to higher levels coupled with declining employment figures in the United States (US) in last Friday’s NFP report.
Investors remain wary of Pound trading in the wake of the resurgence of Brexit pressure as well as investors' focus on tax hike measures to be implemented by UK Prime Minister Boris Johnson.
While the Pound remains in a risky trading group, the depreciation of the US dollar is expected to continue to maintain the bullish price trend for the GBP/USD chart continuing this week.
The price movement was flat at the beginning of this week's trading since the Asian session continued to the beginning of the European session around the 1.38500 level.
The Moving Average 50 (MA50) support level on the 1 -hour time frame will be tested to give an indication of further price movement on the GBP/USD chart.
The bulls will retest the resistance of 1.39000 to head to the next resistance level at 1.4000 thus recording the latest 3 -month high.
However, if the price returns to decline, the level of 1.38000 is seen as the latest support level in the RBS zone (resistance become support).
The lower price decline will lead to the previous RBS zone at 1.37000 again after the price jumped from the zone at the end of August.
