The UK’s planned move to resolve problems arising from the waters crisis in the past seems to have colored the Brexit issue in re -receiving a ray of hope for recovery.
It continues to realize support for the Pound to strengthen slightly after also being supported by expectations that the UK inflation rate is likely to post a strong reading.
But investors also did not take kindly to the USD, which is currently led by the hawkish sentiment of the Federal Reserve (Fed) which wants to tighten policy immediately.
The GBP/USD chart seems to translate to more brisk price movements at the beginning of the market week after prices were seen exhibiting volatile movements in Monday’s trading session.
That is, the price seemed to show a slight increase at the beginning of the European session yesterday with a jump of over 60 pips before declining again at the opening of the New York session later.
But in the end the price movement is seen to have closed the trade by forming a bullish candle and remained moving above the Moving Average 50 (MA50) barrier level at the 1 hour timeframe.
The move will indirectly be considered as an early signal that can support the price in making trend changes that may be able to overcome trendline resistance.
If that happens it will completely strengthen investors' expectations for the price to re -test the SBR (support become resistance) zone of 1.33000 before continuing to climb the 1.34000 test zone.
On the other hand, if the price on the GBP/USD chart continues to gain pressure, the strongest support zone at 1.32000 will certainly be the initial target to be hit first.
The slight decline will push the price back to the lows created last week around 1.31940 and the latest lows are expected to occur.
