October 28, 2021

Did Yesterday's Plunge Shadow GBP/USD To Continue To Plunge?

 Once again the price movement on the GBP/USD chart gave a surprise which this time by making a plunge to pass the weekly low of 1.37400 in the European session yesterday (Wednesday).

The decline is seen to have fallen near the RBS (resistance become support) zone of 1.37000 before re -creating the climb to test the Moving Average 50 (MA5) barrier level at the end of the session.

The price movement trend in the Asian session today (Thursday) seems to have already increased around 20 pips due to the weakness of the USD currency at this point to try the weekly lows again.

European Internal Market Commissioner Thierry Breton’s statement remains a haunting factor on the subsequent Brexit talks that have put pressure on the UK economy.

Investors are also taking precautionary measures following these factors amid post -Brexit uncertainties that still have no consensus and continue to push the Pound slightly weaker.

The strengthening of the USD in the run -up to the release of US Gross Domestic Product (US) data which will give a glimpse of economic growth will also be taken into account by investors.

However, if the price movement continues to be pressed to make a decline, the price is likely to reach the RBS zone (resistance become support) 1.37000 before showing the next reaction.

A lower decline will show a clearer early signal for the price to make a bearish trend change which is expected to be able to head up to the focus zone at 1.36000.

If the price movement returns to highlight the most syahdu performance to soar more, the previous high around 1.38300 is seen to be tested first before climbing higher again.