True to analysts' forecasts, prices on the GBP/USD chart have plunged to their latest lows after the market reacted positively to the release of the US NFP employment data report last Friday.
Strong data readings have prompted a clearer strengthening of the previously slightly gloomy U.S. dollar as investors continue to cautiously monitor the development of the Russia-Ukraine war crisis.
The price on the GBP/USD chart met the expectation to hit the support zone at 1.32000 after last Friday's decline managed to pass the 1.33000 zone.
The bearish trend was identified by investors as the price movement remained below the Moving Average 50 (MA50) barrier level over the 1 -hour time frame and continued to record the latest 3 -month low.
Around the 1.32000-1.31700 zone will be an important zone that will also be price-tested in the Asian session this Monday morning with the expectation that the price will break through it if the US dollar manages to maintain its strength.
Going past the support zone which was also tested last December, the continued decline earlier in the week is seen to test the level around 1.31000 to record the latest low for the 10 -month period since November 2020.
However, if the 1.32000 support zone manages to re -support the price spike like last December, investors are likely to be prepared for a trend change that could happen again.
The initial rise is seen to test the 1.33000 level first before heading to last week's resistance zone around 1.34000.
US inflation data as well as UK economic growth readings will be focused on US dollar and Pound trade.
