Giving a surprise to Pound investors in Wednesday’s trading yesterday when the price on the GBP/USD currency pair chart made a rebound of around 130 pips after the initial decline tested last week’s lows.
Hitting the level around 1.32700 at the beginning of the European session yesterday, the price then rebounded until it reached the resistance level of 1.3400 at the end of the New York session.
The situation fell short of expectations for prices to continue to decline lower in the wake of the week-long Russian-Ukrainian war crisis.
The pound managed to rebound against the US dollar which lost its momentum as a safe-haven currency expected to strengthen in a risky market environment.
The price spike has passed the Moving Average 50 (MA50) barrier on the 1 -hour time frame on the GBP/USD chart. Early signals for a trend change?
Investors will assess whether the resistance zone 1.34000 successfully passed the price to move to the resistance level 1.35000 in the SBR zone (support become resistance).
The depreciation of the US dollar is also likely due to cautious investors ahead of the US NFP jobs report to be published on Friday.
If the NFP report gives a strong reading, the US dollar could strengthen again and push the bearish price lower again on the GBP/USD chart.
The decline is still seen to test the support zone 1.33000-1.32700 which has not been successfully broken since last week.
Further lower declines will follow the focus support zone at around 1.32000-1.31700 which was tested earlier in last December's trading.
