October 12, 2021

The Rising Pattern On The GBP/USD Chart Is Over?

 The pound sterling showed a decline against the US dollar in early trading this week with investors focused on the UK jobs data report to be published at the start of the European session today (Tuesday).

Investors will seek clues to the central bank of England’s (BOE) plans for policy tightening after delivering a hawkish -toned statement at the latest policy meeting.

On the price chart of the GBP/USD pair, the price has slipped lower below the level of 1.36000, giving an early signal for a change in the bearish trend.

The decline in early week trading was also driven by the strengthening of the US dollar as market sentiment was seen to return to risk.

Investors are preparing for a lower price decline after the price moved below the Moving Average 50 (MA50) barrier level with the 1.36000 level re -tested in the Asian session this morning.

Further declines are expected to re -test the RBS (resistance become support) zone of 1.35000 after the price managed to break above that level in early October.

The decline that is still continuing will lead to the support zone which is the focus of the price at the end of last September, which is around 1.34200.

However, if the price resumes the uptrend last week, the resistance zone of 1.37000 will be reached after 2 weeks of the price hovering below that zone.

A strong bullish momentum that is successfully maintained is likely to push the price up to the high of 1.38000.