Can the Pound Sterling continue the strengthening it displayed last week?
Last week investors saw the Pound’s surge heading into the weekend backed by a tax implementation plan by UK Prime Minister Boris Johnson.
Investors are also pinning their hopes on the Pound to move strong this week ahead of expectations of a hawkish decision at the England central bank (BOE) policy meeting next week.
But before the meeting, this week investors will focus on central bank focus data to be published namely the UK jobs data report on Tuesday and the UK inflation data on Wednesday which will influence the movement of the Pound.
Scanning the price movement on the chart of the GBP/USD currency pair last week, the moving price made a decline since the beginning of the week hitting the level around 1.37300 again showing a rebound at the weekend.
The rebound was seen again testing the 1.39000 resistance zone last Friday before closing the weekend trade slightly lower below that zone.
Continuing trading at the market opening earlier this week, the price slipped below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame for early signals of bearish movement.
The 1.38000 level is seen to be the expected focus to be the support zone for the rebound price.
A rebound of the price will test the resistance zone of 1.39000 for the third week in a row which is still a bulwark preventing the price to higher levels.
Passing that resistance will push the price towards the next focus resistance zone at 1.40000.
On the other hand, if the price plunges lower likely with the strengthening of the US dollar, the price that falls below the zone of 1.38000 will go to the support level of 1.37000.
