The re -strengthening situation of the US dollar in the market in the early hours of Thursday morning after the FOMC meeting minutes report was published also saw a decline in prices on the GBP/USD currency pair chart.
The pound sterling, which has been performing well since the beginning of the week, was seen as failing to contain the strengthening of the US dollar before prices were pressed lower again.
Expectations for the price to continue higher up slipped after the price failed to pass the resistance zone at 1.42000.
The drop below the Moving Average 50 (MA50) support level in the 1 -hour time frame of the price movement again also gives an early signal for an impending trend change on the GBP/USD chart.
As shared in the previous analysis, the decline returned to the 1.41000 focus level at the end of the New York session and the price flattened above that level during the Asian session on Thursday morning.
The continued lower decline is seen to re -test the important level of 1.40000 in the RBS zone (resistance become support) which will determine the direction of further price movements.
If the strengthening of the US dollar is only temporary and the rise in prices continues, the resistance zone of 1.42000 will again be challenged by the price.
Beyond that zone, the price pushed the price higher with the expectation to reach the level of 1.43000 while recording the latest high since April 2018.
Investors will be wary of economic data on the manufacturing and services sectors in the UK as well as the US which will affect the movement of the Pound and US dollar.
