The price movement on the GBP/USD currency pair chart failed to soar higher after showing a previous bullish pattern due to the pressure of the US dollar's re -strengthening in the market.
Prices have shown gains but struggled to break past the resistance zone at 1.36500 during the surge that occurred at the beginning of the New York session yesterday following the market reaction to the published US unemployment claims data.
But at the end of the New York session, the re -strengthening US dollar has again sunk the price from the resistance zone 1.36500 towards the support zone 1.35700.
UK inflation data published to a 30 -year high appears to have failed to inject a strengthening Pound this week.
The decline below the Moving Average 50 (MA50) support level in the 1 -hour time frame also signals for the bearish trend to continue.
The price reaction on the support zone at 1.35700 will signal the next price movement whether there will be a lower decline or vice versa.
For lower declines, the support zone at 1.35000 will be the initial focus before a continued decline is likely to hit the level around 1.34000 anyway.
But if the US dollar loses its strengthening momentum again, a rise in prices will ensue and the 1.36500 resistance zone will be retested.
A higher rise past the zone will head back to the high at 1.37400 which was the resistance zone tested last week.
