A precautionary statement by Bank of England (BOE) Governor Andrew Bailey signaling to slow the tightening of monetary policy has previously put pressure on Pound trading.
If we look at the price movement on the chart of the GBP/USD currency pair yesterday, there was an attempt to price a surge in the European session following the market reaction to the development of Russia-Ukraine peace talks.
Initially the decline was seen to hit the level of around 1.30500 before showing a jump of around 100 pips to the daily high of 1.31500.
However, the price made another decline in the New York session and fell below the 1.31000 level which remained a resistance for the price to continue into the Asian session this morning.
The Moving Average 50 (MA50) barrier level on the 1 -hour time frame is still a resistance for the price to make a rise, signaling for the price to continue moving in a bearish trend.
If the price continues to fail to soar, analysts see the decline in the price will continue to head up to the support zone at 1.3000.
However, if the situation changes and the price starts to show signs of starting a bullish trend, the resistance zone at 1.32000-1.31700 will be tested after the bulls successfully pass the MA50 barrier.
For higher gains that continue above the 1.32000 zone, the price will challenge again the 1.33000 high that failed to break on the gains made in last week's trading.
Investors will focus on the release of the ADP NFP employment data report as well as US economic growth data in tonight's New York session to assess the movement of the US dollar which also influenced the price on the GBP/USD chart.
