After a surge in value earlier in the week, the Pound Sterling began to move flat in Tuesday’s trading yesterday with investors ’focus now focused on UK Gross Domestic Product (GDP) growth data for the first quarter of 2021 to be published in the European session this afternoon.
Expectations for contracting growth for the first quarter have dampened the Pound’s strengthening momentum since last weekend.
On the chart of the GBP/USD pair, the price has jumped strongly above the 1.4000 level which was successfully broken and also passed the 1.41000 level.
The 1.41000 level now acts as a support level for the price with the latest high reached around 1.41660 yesterday.
However, the price movement seen more flat yesterday failed to maintain the previous bullish momentum.
In resumed trading on Wednesday, the price eased slightly above the 1.41000 level and tested the Moving Average 50 (MA50) supports on the 1 -hour time frame in the Asian market session.
A price moving down below the MA50 support level will be an early indication for the price to start declining again.
The decline will return to the RBS (resistance become support) zone of 1.4000 for investors to evaluate the price reaction to get an indication of the direction of the next movement.
If the price manages to continue its rise again on the bullish trend, the price will record the latest highs towards the resistance zone of 1.42000 which was tested in last February trading.
