The news of the resignation of the UK Prime Minister, Liz Truss yesterday, invited mixed reactions in the market with the uncertainty that continues to plague the country's economy.
After Finance Minister Kwasi Kwarteng was sacked, Liz Truss resigned making her the shortest serving Prime Minister in British history.
However, the Pound Sterling recorded a strengthening when the news followed investors assessing the confusion of the financial system in the UK will subside with the resignation of Liz Truss.
Thus, the Pound has surged strongly against the US dollar but the momentum failed to be maintained before the re-strengthening of the US dollar towards the end of the New York session again put pressure on the Pound.
It can be observed that the price movement on the chart of the GBP/USD currency pair made a jump from the 1.12000 zone reaching a height of around 1.13300 before the price plunged back to the 1.12000 zone.
The price hovered slowly in the 1.12000 zone until it continued at the beginning of the Asian session this morning (Friday), but there was a bearish signal again after the price dropped below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart.
If the price decline continues in the trading sessions at the end of this week, the 1.11000 level is seen to be the initial focus that will be tested.
Recorded the lowest level this week, the price drop if it passes 1.11000 will be targeted to go up to the 1.09000 zone.
On the other hand, if the price manages to make a jump from the 1.12000 level, the initial resistance seen to be tested is at 1.13000.
Breaking through the MA50 barrier would also signal a bullish trend change before the continued rise could potentially reach the resistance zone tested in early October at around 1.15000.
