InstaForex

October 5, 2021

GBP/USD Continues To Show Outstanding Record At Market Opening This Week

 After recording the latest HL (higher low), the price on the chart of the GBP/USD pair remains continuing the bullish trend as it was displayed at the close of last week's trading.


The price movement also translates to an increase of more than 100 pips to re -test the SBR (support become resistance) zone of 1.36000 before moving slightly horizontally in today's Asian session (Tuesday).


The weakness of the US dollar is among the factors that have catalyzed the price on the GBP/USD chart to continue to rise despite gaining pressure from rising gas prices in the UK.


At a time when the Pound has finally managed to steal a bit of a chance to show some strength again at a time when the USD is seen as struggling to regain its dominance.


The strengthening factor was also supported by the speech of the Governor of the Bank of England (BOE), Andrew Bailey earlier who voiced a hawkish mixed statement about the central bank policy setting.




In today's Asian session (Tuesday), the price movement is still moving slowly at the level of around 1.36000 and remains traded above the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.



If the price manages to maintain the bullish pattern after giving the initial signal of a trend change at the end of last week, the surge is expected to head to the next SBR zone at the level of 1.37000.


The aggressive rise will head back to the SBR 1.38000 zone to show a more pronounced uptrend pattern and give investors a shadow for the price to test the 1.39000 resistance zone.


If the price declines again, the next decline is seen to re -test the RBS zone (resistance become support) 1.35000 which was previously the focus level to be broken.


The dive that passes the RBS zone will show a downward trend to the lowest level created last week around 1.34000.