InstaForex

November 23, 2021

What is the Real Direction for GBP/USD?

 The GBP/USD price movement chart is seen once again maintaining the decline in early week trading even though the price managed to show action in overcoming the resistance trendline for the bullish trend signal.


Yet the price trend is still trading below the Moving Average 50 (MA50) barrier level until the price has started reacting to pass the support zone at 1.34000 at the end of the session.


The opening of trading in the Asian session today (Tuesday) also saw the price movement remain moving below the support zone and as optimistic for the price to return to hit the lows around 1.33530.


The Pound is still embroiled in post-Brexit concerns and also received negative implications from the surge of the Covid-19 case which affected the value of the Pound to weaken.


The actions of the President of the United States (US) Joe Biden who nominated Jerome Powell as President of the Federal Reserve (Fed) for a second term will also have little effect on the movement of the USD.


That is, the measure will be able to stabilize the implementation of the economy more clearly as planned before, namely to implement the tightening of policy in the near future.





The lowest level since December 2020 reached around 1.33530 is likely to be the main focus level that will be hit first before the price continues to present a plunge.


A more devastating plunge will see the price movement on the GBP/USD chart to head to the next support zone at 1.33000 and altogether will record the latest lows.


While the SBR (support become resistance) zone of 1.35000 still remains the focus zone and the earliest to be reached if the price is able to climb again as before.


A clear climb for the price movement to reach the top of the high will see the price test the next SBR zone of 1.36000 and is expected to be able to move towards higher price levels.