InstaForex

November 26, 2021

GBP/USD Remains Pressure, Continues To Sink To The Bottom Of The Ocean

 It seems that the price movement on the GBP/USD chart continues to shock the market by making lower declines to record the latest lows since December 2020 around 1.33000.


Due to that factor, the price pattern is observed to still maintain the downtrend pattern with the price remaining moving below the Moving Average 50 (MA50) barrier level if viewed on the 1 -hour timeframe.


The decline has indirectly continued the 5-week-in-a-row plunge despite as if there were early signs presented in last week’s trading to make a rise.


Uncertainty over the post -Brexit has once again gripped the market after France and the UK still failed to reach an agreement in a dispute that erupted over the waters issue earlier.


Meanwhile, the USD remained strong after the release of unemployment claims data recorded the lowest reading in 52 years as well as rising US GDP data.


The release of the data is likely to indicate an improving labor sector in the US and will strengthen expectations to see a satisfactory reading on the NFP data next week.





The ability to make a more drastic decline will see the price movement break the support level of 1.33000 which is expected to be able to track to the latest support zone of 1.32000.


That is, the support zone used to be the focus zone at the end of 2020 trading where it has already supported the price spike on the GBP/USD chart to reach a 4 -week high.


However, if the beginning of the rise will show price movement, first test the SBR zone (support become resistance) 1.34000 and will completely overcome the MA50 barrier level.


The jump move will thus boost investors' expectations to see the price test the SBR 1.35000 zone before the price is likely to climb to a more impressive peak.