Movements for the Pound Sterling are difficult to anticipate in the absence of UK economic focus data published this week as well as investors still seeing instability in the current recovery for the UK economy.
Thus, the price movement on the GBP/USD currency pair chart continues to be driven by changes in the value of the US dollar in the market.
The price increase in Tuesday's trading yesterday was seen to have reached the target level of 1.38000 in the SBR zone (support become resistance).
But after testing the level several times, the price plunged in the New York session around 60 pips to close the trade around the opening level of the previous Asian session again.
A drop below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the GBP/USD chart also gives an early signal for a bearish price movement.
The continued decline will test the price support zone at 1.37000 last week and the lower decline will be to the support zone 1.36000 which is the lowest price level for a period of 5 weeks.
However, analysts predicted that the decline in prices was only temporary due to profit-taking activity on the US dollar and investors were also cautious ahead of the US NFP employment data report over the weekend.
If the US dollar weakens again, the price will rise again and retest the SBR 1.38000 zone with expectations of passing to higher levels this week.
Passing that zone will push the rise towards the next focus resistance zone at 1.39000 thus recording the latest 4 -week high.
