November 15, 2021

GBP/USD Show Decline 3 Consecutive Weeks

 Looking at the GBP/USD price movement chart, the price seems to climb at the close of last week's trading (Friday) to head back to the SBR (support become resistance) zone at 1.34000.


Price momentum is also seen to have broken the resistance level of Moving Average 50 (MA50) on the 1 -hour time frame in giving an early indication of a trend change to return bullish.


However, analysts expect that the price movement will need to test the trendline resistance first whether the price is only able to make LH (lower high) or continue to overcome it.


That is where the Pound has gotten good news from talks on Brexit between European Commission Vice President Maros Sefcovic and Brexit Minister Lord Frost.


But the cable pair was unable to keep up as the pound still received a blow from the Bank of England's (BOE) move to maintain interest rates.


The next focus of investors will be on the publication of US retail sales data for the USD and consumer price index data for the Pound which will be released this week.



Assuming the price movement remains fashionable in recording the surge, trendline resistance will inevitably be the main focus before the price expectation will reach the SBR zone of 1.35000.


The bullish trend will be clearly shown if the price is able to reach the SBR zone of 1.36000 after the zone has kicked the price to plunge last week.


On the other hand if the pressure momentum is still gained on the GBP/USD price chart, the SBR zone of 1.34000 is expected to be broken again to hit the 2021 low again around 1.33600.


The lower decline will also see the price movement continue to maintain the downward trend for 4 consecutive weeks.