GBP/USD – After Hitting 8-Week High, Price Plunges 100 Pips!


 The price chart of the GBP/USD currency pair started to show a bearish pattern at the end of last week's closing trade.

Analysts saw profit taking activity on the US dollar trading on Friday after seeing the king of the currency experience losses for 5 weeks in a row.

This strengthening situation of the US dollar is expected to be temporary, but the strengthening is still continuing in trading that continues at the opening of the Asian session this Monday morning.

If the US dollar moves weak again, the Pound will take the opportunity to rise in the market.

With expectations for the Federal Reserve (Fed) to further slow monetary policy, important economic data will be watched this week with the main focus being on the United States (US) NFP employment data report on Friday.

If observed on the GBP/USD chart, the price has tested an important resistance at the height of 1.24000 which is the highest level reached in 8 weeks, but failed to break through the higher level on last Friday's price movement.

A decline has been seen seeing the price slip back to around 1.23000 in continued trading earlier this week.

The price has also moved down below the Moving Average 50 (MA50) level on the 1-hour time frame on the GBP/USD chart, giving an early indication of the beginning of a bearish movement.

If the US dollar is still able to pressure the price to fall below the 1.23000 level, the decline is seen to reach the RBS zone (resistance become support) at 1.22000.

The price reaction will be observed, if it bounces, it is likely that the price will continue to rise again. Otherwise, a lower breakout price indicates a more clear bearish signal.

Meanwhile, if the US dollar trades weak again, the price will change direction and make an increase continuing the trading pattern of the previous weeks.

The 1.24000 resistance if successfully overcome will expect an increase to the latest high level to be recorded towards 1.25000.