InstaForex

October 14, 2021

‘Sideway’ Movement Remains Stormy GBP/USD Price

 The UK Gross Domestic Product (GDP) economic growth data report published negative yesterday did not at all doubt the Pound to highlight its dominance.


The Pound is seen again taking the opportunity to re -emphasize its dominance in Wednesday's trading session amid the uncertainty of the USD currency which continues to be dragged down to trade weak.


Nevertheless, investors remain vigilant to await clearer signals on the hawkish-toned statement hurled by Bank of England Governor Andrew Bailey recently.




The Moving Average 50 (MA50) barrier level on the 1 -hour time frame seems to have re -supported the price surge on the GBP/USD chart after it was successfully broken in early trading on Wednesday.


As a result, the price movement has already produced a jump of more than 80 pips to re -test the highs reached at the beginning of this week's market at around 1.36700.



The SBR (support become resistance) zone of 1.37000 remains the focus zone to be tested to give a significant shadow of the expected price movement to strengthen the displayed uptrend pattern.


If the price continues to excel and record a jump past the SBR zone, the price will likely be able to try the SBR zone of 1.38000 and further create the latest 4 -week high.


If the price movement on the GBP/USD chart plummets again, the RBS (resistance become support) zone of 1.36000 will be a concern before expectations test this week’s support level at 1.35700.


A more significant decline will see the price test to the lowest RBS zone at the level of 1.35000 and will be watched by investors to assess the direction of the actual price movement.