InstaForex

October 1, 2021

GBP/USD Remains Bearish Trend Despite Rising $ 1,35000 Test Level

 The weakness displayed by the US dollar seems to only support the price on the GBP/USD chart to return to reach the SBR (support become resistance) zone of 1.35000 before declining again.


The rise to the zone is seen as a reaction to price movements to create the latest LH (lower high) to maintain the downtrend pattern throughout mid -September trading.


Continuing with the opening of the market in the Asian session today (Friday), the price has already dropped more than 30 pips before moving slowly to wait for a more vigorous movement in the European session later.


The release of Gross Domestic Product (GDP) data for the UK which was published positive in the European session yesterday, it did not in any way change the performance of the Pound to continue to remain weak.


The surge in gas prices in the UK remains a major factor putting pressure on the Pound while investors are still awaiting new leads from the Central Bank of England for their policy -making.




Examining the price on the GBP/USD chart, the price movement remained a bearish trend despite exhibiting a bullish pattern at the September closing trade yesterday.



The 1.34000 support zone remains the focus zone to be tested again after the price was unable to break the Moving Average 50 (MA50) barrier level on the 1 -hour frame.


A lower decline will push the price movement past the zone to test the low support zone around 1.33000 to record the latest 9 -month low.


Meanwhile, if the 1.34000 support zone returns to support the price surge, a more aggressive rise will be seen heading to the 1.35000 SBR zone again.


The 1.36000 level remains the focus level to be retested for investors expecting clearer signals to see further movement direction for trend changes.