InstaForex

September 30, 2021

Pound Weakness Drive GBP/USD To The $ 1.34000 Level

 Starting the European session yesterday, the price on the GBP/USD chart is seen to continue the bearish action of more than 100 pips to test the focus zone around 1.34000 which was previously an impenetrable resistance in August 2020.


The decline has also influenced price movements to display the latest record for 2021 lows before returning to support for a surge in the Asian session today (Thursday).


The price has already shown aggressive action to plunge around 500 pips after it reached a high in mid -September around the level of 1.39000.


The strengthening of the US dollar altogether kept pushing prices on the GBP/USD chart to sink lower amid the weakness recorded by the Pound caused by rising gas prices in the UK.


The release of Gross Domestic Product (GDP) data for the Pound in the European session today (Thursday) will be the focus of investors to estimate the direction of the next price movement.





Looking at the current movement, the price is expected to record an increase to the SBR (support become resistance) zone of 1.35000 to create the latest LH (lower high).


If the price movement fails to make the latest LH and passes the SBR zone, the Moving Average 50 (MA50) barrier level will be broken to signal a trend change.


The 1.36000 level will be the focus of investors to aim to show clear indications to return to show more significant gains.


If the lower decline breaks the support zone of 1.34000, the price movement is likely to decline to the next support level at 1.33000 to record the latest 9 -month low.