The price movement on the GBP/USD currency pair chart is seen more horizontally moving in the same zone for the past few weeks.
The pound is seen to be holding back against pressure by the US dollar which is expected to dominate the market due to risk-off sentiment with the focus still on the Russia-Ukraine crisis.
The European session this afternoon will focus on the UK employment data report which will be assessed by the central bank before moving on to the release of UK inflation data on Wednesday.
Examining the price movement at the beginning of the week, the price dropped to the level of 1.13500 which again became a support level for the price.
Testing the RBS (resistance become support) zone, the price rebounded and moved horizontally above the 1.13500 level until the close of the New York session.
Continuing at the beginning of the Asian session this morning, the price tested the resistance level of the Moving Average 50 (MA50) on the 1 hour time frame of the price movement which will signal further direction.
If the US dollar manages to add pressure on the Pound, investors are likely to see the price plunge lower past the RBS 1.35000 zone for a clearer bearish trend.
The lower decline is seen heading up to the level of 1.34000 or the support zone at 1.33700 if the current market situation continues.
On the other hand if the Pound manages to absorb the pressure and strengthens against the US dollar, the price is expected to break the resistance at 1.35700 before heading to the level around 1.36500.
Will record the latest 5 -week high if the level is also successfully overcome with the expectation of the next price increase to head to the high zone around 1.37400.
