Looking at the GBP/USD price movement chart, the price seems to have jumped in the European session yesterday (Tuesday) but it was kicked back to the SBR (support become resistance) zone of 1.36000 to decline again until the end of the New York session.
The surge has also tested the resistance trendline and returned to decline to track the Moving Average 50 (MA50) resistance level on the 1 -hour time frame before closing around 1.35600.
The price movement also seems to give a shadow to make LH (lower high) but the price is seen as powerless to plunge more significantly and seems to be forming an upward pattern.
Even so, investors still need to be vigilant against the movement of the Pound which remains plagued by dovish statements issued by the Bank of England (BOE) following the maintained interest rates.
In addition, risks as well as pressure from the post -Brexit warm -up between Europe and the United Kingdom are likely to push the value of the Pound to make a decline again.
The USD is still embroiled in various uncertainties following the Federal Reserve (Fed) which is gathering all sentiments to implement policy tightening measures while US inflation data is now the focus.
Once again, the signal for a clear bullish trend display will show the price breaking the resistance trendline and return to the SBR 1.36000 zone before recording a stronger climb.
Meanwhile, if the price this time manages to break the wall in the SBR zone, the next SBR zone closest to 1.37000 is expected to be the main focus of investors.
But if the resistance trendline still restrains the price movement from continuing to soar, the RBS zone (resistance become support) 1.35000 is likely to be reached.
A lower decline will see the price test a 5 -week low approaching the support zone at 1.34000 before the price is expected to continue falling.
