Trading earlier in the week (Monday) saw the US dollar move gloomily as banks in the United States (US) closed in conjunction with the Juneteenth Independence Day holiday yesterday.
In addition, investors ’focus is on Federal Reserve (Fed) President Jerome Powell who will testify on the Mid -Year Monetary Policy Report before the senate on Wednesday and will repeat his testimony before a different commission on Thursday.
Fed President Statement Louis, James Bullard stole the market's attention when he stated that the Fed will raise interest rates at the next meeting in addition to insisting that the expansion of the US economy should continue.
After the statement, the US dollar was seen moving slightly well but still on a gloomy movement throughout the day causing most other major currencies in the market to have room to rise including the Pound which was seen to maintain its upward movement even at slower momentum.
The Pound’s surge last week is likely to be difficult to continue this week following the resurgence of the Brexit issue which raised tensions in which the United Kingdom (UK) government announced plans to change northern Ireland’s protocol.
However, the European Union (EU) claims the action is in violation of established international law.
On the price chart of the GBP/USD pair, the slowing momentum of the price movement on the rise at the beginning of the week was seen due to Brexit tensions which disrupted the price momentum even though there was no price decline.
The price managed to display a rise from the level of 1.22000 with a daily increase of around 70-80 pips to head to the focus level of 1.23000.
A rise in price to that level can be achieved today if the Pound manages to maintain its bullish pattern.
Passing the resistance will push a higher rise to retest the resistance zone reached last week which is at 1.24000.
Yet due to concerns over Brexit uncertainties that hit again, investors will be wary of a Pound depreciation scenario that could lead to a resumption of price falls.
A bearish move below the 1.22000 zone will expect the price to head to the level of around 1.210000 first before reaching back to the 1.20000 support zone for a clearer bearish movement.
