The price movement on the GBP/USD chart as seen is trying to change the trend in the European session yesterday after remaining hovering above the 1.33000 level for 3 consecutive days.
However, the attempt to climb appears to have been kicked back to plunge in Tuesday’s New York session which at once recorded the most recent low since December 2020.
That is, the decline has also completely reached the support zone of 1.32000 before climbing back to reach the SBR zone (support become resistance) 1.33000 at the end of the session.
The USD, which was initially traded weak following profit taking activities, is seen to have received a catalyst following the hawkish statement by the Federal Reserve (Fed).
The influence indirectly continues to give a strengthening aspect to the USD against the Pound which is still being dragged down weakly following the post -Brexit which has yet to get a final say.
Not only that, the publication of the ADP NFP data report related to the private sector as well as the manufacturing PMI index of the ISM survey which will be released at tonight's New York session which is also an investor reference.
But if the climb only makes a ‘reversal’, a bearish pattern is expected to be presented to once again track the support zone of 1.32000 in maintaining the bearish trend.
While the main concern of investors is to watch the price movement break through the support zone to see the ability of the price to test the next target around 1.31000.
On the other hand if the price on the GBP/USD chart is able to surprise with a rise, firstly the SBR zone at 1.34000 will likely be the earliest focus zone to re -test.
However, the next surge will show the direction of a clearer bullish signal to reach the SBR zone of 1.35000 which has been a barrier to the price surge in the past.
