December 28, 2021

GBP/USD is Finally Back to Show Outstanding Performance

 The Pound continued to perform well to strengthen after gaining some good recent developments from the Brexit issue talks between the UK-France.

Meanwhile, some analysts claim that the value of the Pound is also perhaps supported by the shock delivered by the Bank of England (BOE) recently implementing an interest rate hike.

While the strengthening was also affected as the weakness of the USD remained weak amid optimistic market sentiment in recording a recovery as Omicron's worries eased.

The lameness that hit the price movement on the chart of the GBP/USD currency pair seems to have re -emerged after the price returned to a record high of the latest 5 weeks.

The record high was created when the price made a rebounce on the trendline resistance and also the resistance level of the Moving Average 50 (MA50) on the 1 -hour time frame to maintain the bullish trend.

The uptrend has also boosted investor confidence to see prices continue to rise more aggressively towards the close of the fourth quarter of 2021.

This proves that the price movement is likely to be able to reach the resistance zone of 1.35000 which will be able to create a new high this December.

That is, the last moment the resistance zone 1.35000 was reached was in mid -November last year where the zone has brushed off the rise for the price to repeat the decline to more than 350 pips.

But on the other hand, if the price movement continues to translate into a decline, the zone 1.34000-1.33640 will certainly be the main zone that will be emphasized first.

A lower price decline over the zone will indirectly push the price to show the ability to return to the RBS (resistance become support) zone of 1.33000.