Pound Sterling trading failed to strengthen towards the end of the week after central bank-focused economic data was published this week.
The published UK employment data report was somewhat mixed and saw the Pound’s passive reaction on Tuesday. While UK inflation data published on Wednesday recorded an increase despite failing to beat the upside forecast, it also failed to inject a surge in the value of the Pound.
The price movement on the chart of the GBP/USD pair is seen to decline from the high of 1.40000 after testing the resistance zone on Tuesday.
Wednesday's trade yesterday the price movement was slower and flattened testing the 1.39000 level before closing the New York session trading around 1.39200.
The decline in prices was also limited due to the weak movement of the US dollar in the market overshadowed by the decline in US government bond yields.
Continuing trading on Thursday, the price slightly rose during the Asian session to test the Moving Average 50 (MA50) barrier on the 1 -hour time frame of the price movement which will give an indication of the direction of further movement.
If the price manages to get past the barrier, the rise is likely to continue to test once again the 1.40000 resistance this week.
The higher increase will target up to the latest high level around 1.41000 before reaching the high level reached in February which is at 1.42000.
On the other hand, if the price continues to fall to end this week's trading at a lower level, the decline will be concentrated towards the RBS (resistance become support) zone of 1.38000.
Next the support zone at 1.37000 will await the continued price fall to re -support the upside.
