InstaForex

October 4, 2021

Where Is The Next Direction For GBP/USD After Soaring Over 100 Pips?

 The close of trading last week saw the price on the chart of the GBP/USD pair show a proud surge and has passed the level of 1.35000 to signal a bullish trend.


Entering the market opening of the Asian session today (Monday) it seems that the price movement is slightly subdued for the possibility of testing the RBS (resistance become support) zone of 1.35000 again.


The decline also casts a shadow over the price of the latest HL (higher low) before a more pronounced uptrend pattern is seen and is expected to be brisk in the European session.


Towards the close of trading last week, the price movement has already exhibited a drastic rise to over 100 pips following the weakness displayed by the US dollar.


However, the surge in gas prices in the UK is expected to continue to put pressure on the current movement of the Pound to continue to show encouraging bullish action.


But the outcome of a recent Central Bank of England meeting threw a hawkish mixed statement in which it is expected to be able to support the Pound to remain strong.





If the price on the GBP/USD chart continues to be supported to record an increase, the SBR (support become resistance) zone of 1.36000 will be the next direction to test.


A more stylish upside is expected to head to the next SBR zone around 1.37000 to give investors a clearer surge momentum.


Meanwhile, if the price movement on GBP/USD fails to record a higher increase, the RBS zone of 1.35000 is likely to be broken for the price to re -test the level of 1.34000.