The release of encouraging UK jobs data in the European session yesterday did little to allay the grief of the Pound to strengthen after often being haunted by gloomy market sentiment.
Before awaiting the outcome of England's central bank meeting on Thursday, the focus will be on the release of the UK's annual inflation data report in the European session shortly.
However, the strengthening was stunted as the US producer price data index (PPI) also recorded a positive reading to further drive the USD in recording gains.
The main focus of investors will probably be more on the release of the retail sales data report that will be published in the New York session tonight before the FOMC meeting.
The price movement on the GBP/USD chart seems to be just a rebound on the resistance trendline before rebounding in the European session yesterday (Tuesday) to trigger a jump above 60 pips.
But the surge could not last long after the price was pressed again to make a plunge until the end of the session to re -hit the support zone at 1.32000.
It can also be observed that the 1.32000 support zone continues to support the price spike and still fails to pass and the price is seen to remain moving in the zone during the Asian trading session today (Wednesday).
The momentum has also complicated investors' expectations ahead of the FOMC and BOE meetings to await a clearer policy that they want to implement.
If the USD continues to gain strengthening momentum, then investors will likely see the price re -test the 2021 lows around 1.31600 and is expected to be able to hit the 1.31000 zone.
With a different tone illogically the price movement is likely to return to the highest level around 1.32660 before the ability to continue to soar will result.
The ability to continue to soar will see a more pronounced picture for the price to continue the bullish trend which is likely to drive the price to the SBR (support become resistance) zone of 1.33000.
