After the price movement of the GBP/USD pair tested the SBR zone (support become resistance) 1.38000 and touched the resistance level of the Moving Average 50 (MA50) the price is seen to decline again.
But the bearish pattern does not seem to be able to sink lower after still failing to continue to break the weekly support level around 1.37400 during the European session (Monday).
However, the price movement still remained exhibiting a downtrend pattern despite the price moving horizontally at the end of the session and continuing to the trading session in the Asian session today (Tuesday).
That is, investors seem to be taking precautions on the indicators of economic growth in the United States (US) to assess a more realistic movement against the USD.
The pressure on the Pound, meanwhile, has seen the wait for the Bank of England's (BOE) move to raise interest rates a bit stagnant following a significant increase in Covid-19 cases in Britain.
The resistance level of 1.37400 is likely to be tested again and if the ‘descending triangle’ pattern displayed is ‘valid’, then the price movement is expected to be able to decline lower.
While the lower decline will see a re -plunge to hit the RBS (resistance become support) zone of 1.37000 and a clear signal for the price to remain with a bearish trend.
On the other hand, if the price returns to show excellent action to soar, the weekly high of 1.38300 is expected to be the main focus level to test before soaring more aggressively.
