The European and New York sessions yesterday saw a rebound on the GBP/USD currency pair chart as the US dollar met market forecasts to return to decline in early September trading yesterday.
The price has risen from the level around 1.37300 to re-test the resistance level of 1.38000 in the SBR zone (support become resistance) for the second day in a row.
However, it has not yet managed to penetrate this important zone to signal the direction of further price movements.
The rise in prices is still driven by the re -depreciation factor of the US dollar which is expected to weaken for a longer period after a dovish -toned statement was delivered by Federal Reserve (Fed) Chairman Jerome Powell last weekend.
Meanwhile, the Pound is seen to be performing poorly in the absence of key economic data as well as gloomy developments in the UK. Thus, investors are a bit hesitant to expect an energetic price spike on the GBP/USD chart for the near term.
However, if the price manages to jump past the SBR zone of 1.38000, it will give a positive sign for the price to continue the bullish trend.
The next bullish expectation will lead to the resistance level at the high of 1.39000 to record the latest high for the trading period around 4 weeks.
On the other hand, if the price plummets again after failing to break the SBR zone of 1.38000, the price support zone is seen at 1.37000 which has been supporting the price since last week.
The lower decline that failed to be contained will be 'pulled' back to the support policy of 1.36000 like the August trade.
