Heading into the trading session this week saw the price on the chart of the GBP/USD pair still struggling and failed to break the SBR (support become resistance) zone of 1.36000.
The bearish action presented has also passed the Moving Average 50 (MA50) barrier level in the 1 -hour timeframe to return to give an early signal of an impending trend change.
The weakness of the Pound in the Asian session and continued into the European session yesterday was seen still due to the pressure on gas prices that have risen to record the latest record highs.
However, Russian President Vladimir Putin has issued a statement that Russia is ready to help in re -stabilizing the global energy market.
The statement made by him slightly influenced the Pound to record a strengthening and subsequently restore risk-on sentiment in the New York session yesterday.
However, the publication of the United States (US) ADP NFP employment data report exhibiting a positive reading has kicked the price on the GBP/USD chart to a slight decline.
After breaking the SBR zone of 1.36000, the price is expected to be able to move to the RBS (resistance become support) zone of 1.35000 before being evaluated by investors to determine the direction of further movement.
If the decline continues, the support zone of 1.34000 is likely to be hit again which is the zone that has supported the price surge again last week.
If the price movement exhibits a rebound, the SBR zone of 1.36000 will once again be tested to pass and head back to the next SBR zone around 1.37000.
The surge will react to the price rebounding more aggressively and is likely to be able to test the higher SBR zone at the 1.38000 level.
