While waiting for the UK economic growth report as well as economic data to be published together in the European session soon, the Pound returned to a weak move in trading on Thursday.
This is following renewed pressure by the strengthening US dollar in the market after the published US inflation data remained at a 40 -year high.
Thus, investors saw the price on the GBP/USD currency pair chart again making a decline yesterday, refuting expectations to continue higher gains.
Previously, investors evaluated signals for a bullish trend change after the price jumped from the 1.31000 support zone and passed the Moving Average 50 (MA50) barrier on the 1 -hour time frame.
But yesterday's trading saw the price fail to break the resistance zone of 1.32000 and the decline in the New York session has returned to the support zone of 1.31000.
Also moving back below the MA50 barrier level gives an indication for the price to resume movement on the bearish trend like the previous week.
The drop below the 1.31000 level is seen to lead to the focus level around 1.3000 to record the latest 16 -month low.
On the other hand if the price returns to make a rise, resistance for the price is still seen in the 1.32000 zone before a higher rise gives a clearer signal for a change in the bullish trend.
Further price increases will again touch the level of 1.33000 for the price to test the SBR zone (support become resistance).
Investors will be more cautious on next week’s trading ahead of the England central bank meeting as well as the FOMC which will affect the movement of the US dollar and Pound.
