InstaForex

October 29, 2021

GBP/USD Even Soared Despite Under Pressure From Brexit Uncertainty

 The price movement on the GBP/USD chart seems to be rebounding by recording a daily rise of around 100 pips in the New York session (Thursday) to test the SBR (support become resistance) zone of 1.38000.


The surge trend is seen as powerless to fly higher until it penetrates the SBR zone when the price returns to show bearish action at the end of the session and remains hovering in that zone.


However, the price increase has also passed the Moving Average 50 (MA50) barrier level in the 1 -hour time frame to see the price give an early signal for a change in trend.


The Pound seems to be back in dominance despite still being pressured by the Brexit uncertainty which is currently heating up as there are a number of issues going on.


Namely the crisis in the waters that France is said to have detained and issued a summons to the UK boat as well as the aftermath, it continues to make the unrest over Brexit resurface.


However, the Pound remained superior after the USD was again dragged down weak by the publication of third -quarter US Gross Domestic Product (US) data which declined lower than expected.





If the price remains able to continue its stronger surge past the SBR zone of 1.38000, the price is expected to have the potential to return to test the highs that still failed to break at 1.38300.


The resistance zone of 1.39000 remains the focus zone to be reached if the price movement on the GBP/USD chart manages to increase aggressively to record the latest 5 -week high.


However, if the USD returns to strengthen at the end of this week's trading, investors may see the price plummet again and test the RBS (resistance become support) zone of 1.37000.