InstaForex

October 11, 2021

Pound Gains Dominance But GBP/USD Still Fails To Break The $ 1,36400 Wall

 On the price chart of the GBP/USD pair, the Pound is seen slightly strengthening against the USD to support the price movement retesting the most intact resistance level around 1.36400.


The resistance level of 1.36400 continues to negate the price movement to soar higher which it has been driven by the 10 -year US treasury yield which remained showing excellent performance.


Entering the Asian session at the market opening this week (Monday), the price again showed a surge to once again test the resistance level but it is seen as still failing to break.


The dominance of the Pound seems to continue to be driven by the statement of Russian President Vladimir Putin who intervened to resolve the issue of gas prices in the UK before.


Nevertheless, the UK employment data report to be published on Tuesday will be a reference for investors on the Bank of England’s (BOE) expectations to implement policy tightening.


If the published data shows an encouraging reading, it is likely that it will continue to drive the Pound to continue to strengthen at a time when the USD is uncertain.





And if the Pound continues to strengthen, it is not impossible for the price movement to break through the hardest barrier at 1.36400 to reach the SBR (support become resistance) zone of 1.37000.


A higher rise reaching the SBR 1.37000 zone will further convince investors for the GBP/USD price to maintain the bullish trend and the SBR 1.38000 zone will be the focus to target as well.


However, if the USD suddenly returns to give a surprise to strengthen against the Pound, the price movement is expected to decline again and break the level of 1.36000.


A lower decline above the 1.36000 level will see the price return to the RBS (resistance become support) zone of 1.35000 and will mark expectations for a higher price spike.