November 17, 2021

Can GBP/USD Break Trendline Resistance Or Continue To Sink?

 Looking at the GBP/USD price movement chart, the price remained moving sideways this week but there were few attempts to test the trendline resistance at the beginning of the European session yesterday (Tuesday).


Even so, the attempt to break the resistance trendline still seems to have failed after the price was restrained again to show a decline and continued to hover in the support zone of 1.34000.


At the opening of trading in the early Asian session today (Wednesday), the price movement is seen to have made a plunge below the Moving Average 50 (MA50) barrier level for the initial signal of the downtrend pattern.


It seems that the Pound is getting a bit of a boost from strong UK jobs data to show dominance ahead of the release of inflation data to be published in the European session later.


But the dominance was also limited by concerns over the post-Brexit as well as the resurgence of Covid-19 outbreak cases in the country which made market sentiment currently quite risky.


As a result of this aspect, it has given an advantage to the USD to record a strengthening and also driven by the best United States (US) retail sales data.



The resistance trendline will definitely remain as an early indicator to investors for the price to make a bullish trend and is expected to reach the SBR zone (support become resistance) 1.35000.


While the next SBR zone will be seen at 1.36000 which will likely give a clearer signal for the price movement to continue to show a climb to higher levels.


But the support zone of 1.34000 is expected to be broken if the bearish momentum is maintained again for the price to reach the lowest level for 2021 around 1.33530.