InstaForex

November 4, 2021

Will GBP/USD Remain Bearish Trend Ahead of BOE Meeting?

 If we look at the price chart of the GBP/USD pair, the price is seen to continue to maintain the bearish trend by re -testing the RBS zone (resistance become support) 1.36000.


Pressure over Brexit concerns still pushed the Pound to weaken in early November trading despite France giving the UK a chance to defuse tensions.


The pound also remained embroiled in uncertainty as well as a clear picture of the Bank of England (BOE) in making an interest rate hike or not at this Thursday's policy meeting.


As a result, it continues to stimulate the USD to strengthen further but the release of important data and the FOMC meeting tonight will be decisive for the king of the currency.




The price movement on the GBP/USD chart also seems to have made a decline of over 200 pips from the highest level and the most ‘immune’ resistance zone to be broken around 1.38300.



The price is still moving below the Moving Average 50 (MA50) barrier level despite showing a slight jump or rebounce in the RBS 1.36000 zone during trading in the Asian session today (Wednesday).


A significant decline will see the price movement decline to the support zone of 1.35000 and will indirectly create the latest lows in 4 weeks.


However, if the current RBS zone is able to continue to support the price surge to higher levels, the SBR (support become resistance) zone of 1.37000 will remain the main zone to be tested.


An aggressive price flight will head to the next SBR zone at 1.38000 and once again will likely reach the 1.38300 high which often curbs the spike further.