A UK employment data report published at the start of the European session yesterday was seen supporting the Pound’s rise pushing up prices on the GBP/USD currency pair chart.
In addition, also contributing to the rise in prices was the weak movement of the US dollar until the US inflation data was published at the beginning of the New York session.
But heading into trading until the end of the New York session, the US dollar was seen to regain its value and again put pressure on the GBP/USD chart to decline much lower than the gains in the previous session.
Investors are also likely to be wary of the Pound’s movement following the Brexit uncertainty that has re -hovered in the market with a stalemate reaching an agreement between the EU and the UK on the Northern Ireland issue.
It can be observed that the price has risen testing the resistance zone of 1.39000 in yesterday's trading, but still failed to break it making the third week in a row the zone managed to block the price increase.
A more significant decline was seen in the New York session around 100 pips to return to the 1.38000 support zone that the price had hit earlier in the week.
The bearish signal of the price is clearer if the price falls below the support zone of 1.38000 in today's trading after the price moves back below the Moving Average 50 (MA50) barrier level in the 1 hour time frame of the price movement on the GBP/USD chart.
The decline that may continue is seen to lead to the level of 1.37000 to test the support zone.
However, if the price manages to rebound from the support zone of 1.38000, the resistance zone at 1.39000 is still the focus zone to test the price.
Passing the resistance zone will push the price higher to hit the latest 6 -week high.
