Expected to plunge deeper, the price on the GBP/USD currency pair chart has returned to display yesterday’s spike with daily gains recorded almost 200 pips!
The pound managed to appreciate against the US dollar despite Brexit tensions seen to add pressure on the British currency.
The European Union (EU) is seen not agreeing to new negotiations of the deal after the UK wanted changes to the previous Northern Ireland protocol.
Last Wednesday, prices on the GBP/USD chart showed a bearish pattern following the re -strengthening of the US dollar in a risky return market sentiment.
Yet on Thursday yesterday, the price has made a rebound from the level of 1.23300 past the zone of 1.24000 and reached back to the high level of 1.25000.
The 1.25000 resistance zone was also tested on Tuesday and Wednesday but failed to break before investors saw the price decline again.
Will the price break the resistance zone at the close of trading this weekend?
If the price increase continues beyond that zone, the higher target for the price is towards the zone around 1.26000.
On the other hand if the 1.26000 zone remains ‘immune’ to a break, the price is likely to plummet again testing the 1.24000 zone first before continuing the lower decline.
The next decline is seen to be heading to the zone around 1.23000 and then testing last week’s price support level which was touched around 1.21700.
