InstaForex

October 6, 2021

Struggling To Show Excellent Record, GBP/USD Survived At $ 1.3600 Level

 Looking at the price chart of the GBP/USD pair, the price movement remains showing a bullish trend after recording the latest HH (higher high) yesterday almost at the high level around 1.36500.


Due to the US dollar being seen to continue to show dismal action at the beginning of this week's trading, very little has given the Pound a chance to continue to strengthen.


However, rising gas prices in the UK are still among the focus factors that investors will assess whether the Pound is able to take power this week or will be repelled by the USD.


In addition, the strengthening support was also driven by a speech delivered by the Governor of the Bank of England (BOE), Andrew Bailey recently on policy tightening.




The United States (US) ADP NFP employment data report measuring private sector employment will be published tonight and is expected to be an important factor in influencing the exact direction of price movements on the GBP/USD chart.



During the Asian session today (Wednesday), the price movement seems to have made a decline of over 20 pips to test the Moving Average 50 (MA50) barrier level in the 1 hour time frame.


If it fails to continue the more significant uptrend, the price is likely to break the SBR (support become resistance) zone of 1.36000 and return to give the initial signal of a bearish trend.


Lowering and passing the SBR zone, it is likely that the price movement will retest the RBS (resistance become support) zone of 1.35000 or to the lower support zone level at 1.34000.


However, if the price manages to maintain the bullish pattern, the further SBR zone around 1.37000 will be the focus and then head back to the SBR zone of 1.38000 for investors to examine the bullish trend more clearly.