The price movement on the GBP/USD currency pair chart failed to maintain the upward momentum after the market saw prices plummet during the European session.
While the New York session saw the US dollar move back weakly and give room for other major currencies in the market to rise, the Pound remained passive.
Pound’s depletion situation is driven by concerns over the development of the AstraZeneca vaccine after it was reported there was a link between vaccine injections and side effects of blood clots.
However, cases are rare and vaccination is still encouraged in an effort to curb the risk of more serious viral transmission.
The price on the GBP/USD chart is seen to have plummeted from a 3 -week high at almost the 1.39200 level to the 1.38000 level.
Hitting the RBS (resistance become support) zone, the price movement began to slow until trading resumed the Asian session on Wednesday morning.
Prices moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame also give an indication for a bearish trend in the price again.
If the price falls below the level of 1.38000, investors will be prepared for a lower decline of the price is likely to lead to the level of 1.37000.
Yet reports that the UK government has ordered 17 million doses of 2-injection of the Moderna vaccine to meet the needs of its 8.5 million citizens, are likely to allay concerns again.
If the price manages to rebound, the 1.39200 high will be tested again before the price continues its higher climb heading back to the previous resistance level of 1.40000.
