InstaForex

October 18, 2021

GBP/USD Most Outstanding, Finished End of Previous Gloomy Movement

 Looking at the price chart of the GBP/USD pair, the price has finally ended the gloomy movement exhibited previously with a stylish spike over the weekend.


Starting the European session and continuing to the New York session (Friday), the price movement seems to have added around 100 pips to almost reach the SBR (support become resistance) zone of 1.38000.


The surge shown has indirectly recorded its latest high for 4 weeks but the price was seen to decline slightly at the opening of trading in the Asian session today (Monday).


The price movement exhibited also remained traded above the Moving Average 50 (MA50) barrier level on the 1 -hour time frame to signal a more pronounced uptrend.


The Pound continued to take the opportunity to strengthen against the USD injected by the hawkish statement hurled by the Governor of the Bank of England (BOE) recently.


Investors are also expected to look forward to the release of UK inflation data on Wednesday to assess whether the Pound's strengthening can continue or not.





A more accurate possibility will show the price on the GBP/USD chart to return to the SBR zone 1.38000 to continue to soar aggressively in making the latest HH (higher high).


Analysts expect the price movement to reach the resistance zone of 1.39000 if the price manages to maintain an excellent record as at the end of last week's trading.


But on the other hand, if the price decline again passes the MA50 barrier level, the RBS (resistance become support) zone of 1.37000 is seen to be tested before the expectation for the price to continue to decline.


A lower decline will see the price movement hit the RBS zone further at 1.36000 and will give an early signal for the price to make a reversal of the trend.