Like the Euro, the Pound Sterling is also moving slowly in a market failing to take full advantage of space after the depreciation by the US dollar.
Investors are wary of Pound trading ahead of the Gross Domestic Product (GDP) data report released for January on Friday.
The readings, which will be published along with some other UK economic data, are expected to display unsatisfactory figures, raising investor concerns.
Thus, it can be observed that the price movement on the chart of the GBP/USD currency pair shows a relatively passive increase despite the US dollar moving lower in the market this week.
There is a bullish trend change signal on the GBP/USD chart after the price moved higher past the support zone of 1.38500 and also past the support level of Moving Average 50 (MA50) on the 1 hour time frame of the price movement.
On Wednesday trading yesterday also saw the price making a decline supported by the MA50 level before closing the New York session trading slightly higher past the previous day’s high level around 1.39380.
Continuing on Thursday's trading, the price movement slowed around that high level in the Asian session and it is expected that the price will still continue to rise, but at a relatively limited rate.
The resistance level at 1.40000 will be the main focus of the price after the price that tested the level last week several times still failed to break it.
Be wary if the price returns to show a decline again with the support zone at 1.38500 seen to be the focus again.
The lower decline could reach up to the level around 1.37000 which is the RBS (resistance become support) zone in previous trades.
