GBP/USD Is At Risk To Plunge Due To This Factor!


 Concerns once again engulfed the UK when the latest report was seen as likely to cause tension following the actions of Finance Minister Jeremy Hunt which contradicted Prime Minister Rishi Sunak's previous stance.

Hunt is reported to be personally trying to bridge the relationship between Britain and the European Union (EU) where previously Rishi Sunak has stated that he does not agree to continue trade relations with the bloc which is said to be one-sided.

This situation is seen to increase the pressure on the Pound currency following this uncertainty.

However, the Pound on Tuesday yesterday was still seen to be showing a positive movement that increased against the US dollar.

Investors are now wary of trading the US dollar as they await the reaction after the minutes of the FOMC meeting were published early Thursday morning.

The price chart of the GBP/USD currency pair on Tuesday yesterday showed a bullish pattern again, not continuing the decline at the beginning of last week when investors expected a trend change.

The price movement is still in the sideways zone between the price support range of 1.18000 and resistance at 1.19400.

After the price bounced back from the 1.18000 zone, trading in the New York session yesterday saw the price flat at the height of 1.19000 which was the analyst's expectation zone before.

Flat until continuing into the Asian session this Wednesday morning, the price however gave an early indication of a bullish move after the rise had crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart.

If the increase can continue today, the 1.19400 resistance is expected to be broken before the price goes to the 1.2000 zone.

The 1.2000 zone was the height reached last week when the price recorded a 13-week high.

Meanwhile, for the expectation of a price drop, the 1.18000 support zone will continue to be the focus to be tested again after successfully bouncing the price up again.

However, if the price manages to break through, the decline can be expected to decrease towards the 1.16000 zone.