If we look at the price chart of the GBP/USD pair, the price is still unable to continue rising to break the weekly high recorded around 1.38300.
The price movement trend also seems to remain moving in the RBS (resistance become support) zone of 1.38000 and is still hovering at the Moving Average 50 (MA50) resistance level on the 1 -hour time frame.
Entering the Asian session at the end of this week’s trading (Friday), the price displayed a slight increase before being kicked down again by the MA50 to maintain the bearish pattern.
The USD appears to have returned to dominance after being driven by the release of US unemployment claims data which posted a positive reading.
Deck because of those factors, it has slightly hampered the Pound’s efforts to continue to show strengthening following the Bank of England (BOE) Governor’s hawkish statement.
The release of the United Kingdom PMI economic data in the European session soon is also expected to be an aspect that investors will take into account to assess the further buoyancy for the Pound.
However, if the price movement on the GBP/USD chart continues to be dragged down by the strengthening of the USD, the price is likely to be pushed to re -hit the RBS (resistance become support) zone of 1.37000.
The decline beyond the RBS zone is expected to see the price react to make a decline to lower levels and give an early signal for a trend change.
If the price goes back up, the 4 -week high at 1.38300 will likely be re -tested first before the price flies high to test the next resistance zone.
The SBR (support become resistance) zone of 1.39000 will remain the earliest zone to target which is expected to form the latest HH (higher high) pattern and remain with the bullish trend movement.
