The price movement on the chart of the GBP/USD currency pair showed a lower decline in Tuesday's trading yesterday weighed down by the strengthening of the US dollar.
Not only the Pound, but other major currencies in the market also suffered the same fate of receiving pressure from the re -strengthening of the US dollar yesterday.
However, there is a recent report that is seen to be backing the Pound following a statement issued by England central bank (BOE) policymaker Michael Saunders who saw the stimulus was no longer needed by the UK, instead it was time for interest rates to be raised again next year. .
These hawkish -toned comments have the potential to boost the value of the Pound again, however a more significant strengthening of the US dollar has pushed the price lower on the GBP/USD chart.
The decline fell below the 1.38000 level at the beginning of the New York session yesterday but towards the end of the session, the price began to flatten and hovered in the RBS (resistance become support) zone.
The horizontal price movement below the RBS 1.38000 zone continues into the Asian session this morning (Wednesday). A lower price decline is expected after a bearish signal of the price moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
The continued decline is seen towards the price support zone at 1.37000 which was the focus of trading at the end of August.
If the price manages to rebound above the RBS zone of 1.38000, passing the MA50 barrier will signal a bullish change again for the price to retest the resistance zone of 1.39000.
The zone was tested last weekend but failed for its price penetration after 2 consecutive weeks of gains were exhibited.
