Data readings for the manufacturing and services sectors in the UK recorded positive figures for February when published at the European session yesterday.
However, the reading failed to support the Pound to strengthen in early week trading as pressure by the US dollar faced a tense atmosphere by the ongoing Russian and Ukrainian crises.
Observing the price movement on the chart of the GBP/USD currency pair, the price still failed to break the resistance at 1.36400 after the price increase was displayed at the opening of trading earlier in the week yesterday.
The New York session again saw the decline again with the strengthening of the US dollar pushing the price towards the RBS (resistance become support) zone of 1.35700.
While the price has signaled for a reversal of the bearish trend with a movement below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the GBP/USD chart, investors remain vigilant for any possible shocks.
If the lower price drops beyond the RBS zone of 1.35700, a clearer indication of a bearish trend will push the price towards the lower RBS zone of 1.35000.
Investors will watch the price reaction in the important zone after a few weeks of successfully curbing the price fall and supporting the price to rebound.
Yet if the price still holds above the 1.35700 zone, the upside is still seen to test the resistance zone at 1.36400-1.36600.
Passing that resistance will mark the latest 6 -week high with the target being at the 1.37400 high that was tested in January trading last year.
