At first like bullish, but kind of bearish again.
The price movement on the price chart of the GBP/USD pair also gave an interesting reaction following the US inflation data report published in the New York session yesterday.
After the price made a rise in the European session testing the resistance around 1.35800, the decline re -emerged following the strengthening of the US dollar on the initial reaction of inflation data published at the highest figure in 40 years.
But again came as a surprise when the US dollar depreciated significantly then saw the price jump around 120 pips to the high of 1.36400.
Towards the end of the New York session, prices plunged back from those highs with the re -strengthening of the US dollar following the increase in US 10 -year treasury yields to 2%.
The decline returned to the 1.35500 level and flattened around that until the continuation of the Asian session trading this morning (Friday).
With the expectation for further strengthening of the US dollar in addition to the price moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame for bearish signals, the price is about to decline testing the support level at 1.35000.
The next continued decline will lead to the previous focus level as at 1.34000 and also the support zone 1.33700.
As for the uptrend, the resistance level of 1.36400 will continue to be an important level to test the price after yesterday's rise failed to break it.
Breaking the resistance will push the price higher to reach the latest highs around 1.37400.
