InstaForex

October 27, 2021

GBP/USD Play Crazy! The True Direction Is Still Not Seen

 The price movement on the GBP/USD chart seems to have come as a surprise by recording an aggressive rise until retesting the 1.38300 high in the European trading session yesterday (Tuesday).


The surge completely continued to eliminate the ‘descending triagle’ pattern that wanted to be exhibited before returning to make the jump after continuing to be restrained at the highest level at the beginning of the New York session.


However, towards the end of the session, the price movement trend is seen moving slowly and horizontally until it continues to the opening of the trading session in the Asian session today (Wednesday) towards the European session.


Following the statement by the European Commissioner for Internal Markets, Thierry Breton, who commented on the uncertainty of Brexit, it indirectly continued to put pressure on the UK economy and also led to the depreciation of the Pound.


In addition, concerns over the Bank of England's (BOE) move to make a slightly stagnant 'tapering' also continue to affect the Pound remains weak and volatile.


Important economic data measuring US consumer confidence, which recorded a few positive publications, was among the main factors that supported the strengthening of the USD yesterday.





If the Pound remains under pressure to continue to move weaker against the USD, the price is expected to make a decline to hit back to the resistance level around 1.37400.


While the low decline will see a drastic plunge that is likely to track the RBS zone (resistance become support) 1.37000 and give an early signal for a bearish trend.


On the other hand if the price re -presents excellent action to rise higher, the high of 1.38300 is still the focus level to be broken likely to be tested again.