The pound sterling exhibited good trading performance last week supported by investor confidence in expectations of an economic recovery in the UK.
The declining number of viral infections is being curbed by intensified vaccination programs. It is reported that over 5 million UK citizens have received a second dose of the vaccine involving around 10% of their country’s population.
The price chart of the GBP/USD pair has displayed a positive rise after the price crossed the 1.38000 level which was also driven by the depreciation of the US dollar in the market.
Ahead of last week’s NFP employment data report, the U.S. dollar was moving downward influenced by a sharp decline in 10-year U.S. treasury yields.
But after hitting a high of 1.38500 at the beginning of the European session on Friday, the price pressed lower again following a good read on the US NFP jobs report.
The decline however is still supported by the Moving Average 50 (MA50) support level on the 1 hour time frame which remains a signal for a bullish trend.
Price movements slowed in the Asian and European sessions today with most banks still closed in conjunction with the Easter Holiday. The New York session will expect more aggressive price movements.
If the price makes a higher rise than last week, the initial resistance at 1.38700 needs to be broken before the price continues its climb towards the 1.4000 zone.
However, if the price plunges lower, the level of 1.37000 will be a support zone for the price before the lower decline will lead to the level of 1.36000.
