The price of British pound has dropped. Now, it is trying to undergo correction. Should the price of this asset rise, the currency pair GBP/USD will have to potentially face resistance at the levels 1.2860 and 1.3000. These levels might eventually reverse the price of this currency pair and make it head South. So, let’s wait and see what is going to happen next.

Last week the 10-year yield of U.S. government bonds rebounded to the broken downtrend. It might gain the required support at the level of 4.2%. The yield of this asset might potentially rebound again at the level of about 4.0 to 4.1%, and then rise. Let us remind you that when the yield of the government bonds goes up, their price always goes down, and vice versa.

Let’s have a look at the cross rate of the currency pair EUR/CHF. The price of this asset retested the supporting zone formed between levels 0.9211 and 0.9255. These levels are the minimum prices in many years hence the bulls might benefit from that matter and seize the initiative. Should the asset’s price remain at the same level, it might easily rebound and rise. This might make the currency pair sellable again. So, let’s wait and see whether this scenario is going to work out.

Let us remind you that this material is provided for informative purposes only and cannot be considered as a direct go-ahead to implement transactions in the financial markets. Trading in the financial markets is very risky.

Oleg Svirgun, market expert of the brokerage company Tickmill