Market misery over the re-emergence of the Covid-19 epidemic coupled with the discovery of new variants continues to add turmoil to the post-Brexit which has yet to reach a consensus.
Market sentiment is seen as a bit risky and mixed at a time when the existence of the Omicron variant in South Africa continues to erode the movement of the USD currency to remain showing strengthening.
The turmoil was also haunted by profit taking activities as well as the decline in the 10 -year treasury yield of the United States (US) which experienced a fall from almost 1.70% to below 1.50%.
The price movement on the GBP/USD chart seems to have once again created the latest lows around 1.32800 in last week’s closing European session before rebounding.
The surge was also seen continuing into the New York session on Friday before displaying a volatile movement at the end of the session to continue hovering at the 1.33000 support zone until today (Monday).
The price also saw the price movement remain traded above the resistance level of the Moving Average 50 (MA50) on the 1 -hour time frame for an early signal to an impending bullish trend change.
This situation will certainly show that the price will be able to reach the SBR zone (support become resistance) 1.34000 if the bullish trend is successfully displayed more clearly on the GBP/USD chart.
The ability for a fierce surge is likely to test the next SBR zone at 1.35000 as well as it was once a momentary resistance that failed to be broken in mid -November.
Assuming the price movement continues to maintain the bearish trend, the support zone of 1.33000 as well as the lows reached last week around 1.32800 are expected to be able to be tested.
A lower decline will see the price track to the support zone of 1.32000 which previously supported the price surge until it reaches a record high in 3 years.
