Expectations for a bearish trend to start on the GBP/USD chart slipped as the price returned to show a re -strengthening.
A number of factors that slightly hampered the strengthening of the US dollar such as market risk-on sentiment as well as the declining ISM survey data for the manufacturing sector in the United States (US), have given room for the Pound to rebound.
As investors are aware, both the Pound and the US dollar are expected to perform well this year as the central bank of England and the Federal Reserve (Fed) have each moved into a phase of tightening their monetary policy.
Thus, the somewhat disrupted momentum of the US dollar yesterday has prompted the Pound to rebound to record the latest high on the GBP/USD chart.
Investors will focus on tonight’s ADP NFP employment data report that measures the U.S. private employment sector and also gives clues to the NFP report over the weekend.
The rise if continued will try to break the resistance of 1.35700 before heading to the next high at the target of 1.36500.
However, if the price plummets again, the 1.35000 level and the Moving Average 50 (MA50) support level on the 1 -hour time frame broken will signal to restart the bearish trend as at the beginning of the week.
The decline is seen to be towards the level of 1.34000 and also the RBS zone (resistance become support) at 1.33600.
