The same movement pattern was displayed on the price chart of the GBP/USD currency pair yesterday as it happened last Friday.
The bearish price tested the 1.3000 support zone but then failed to continue the lower decline and bounced back.
On Monday yesterday, the price bounced back from the 1.3000 support zone to the highs around 1.30500 testing the Moving Average 50 (MA50) resistance level on the 1 -hour time frame.
Prices that still failed to pass the MA50 barrier remain indicative of price movements in a bearish trend.
Investors are now awaiting reports of UK employment data in the European session and US inflation data in the New York session which will in turn influence movements for the Pound and US dollar.
If US inflation data continues to hit the latest 40 -year high, it is likely that the US dollar will strengthen and push prices lower past the 1.3000 support zone.
The continued lower decline is expected to hit the level around 1.2900 to record the latest low since the end of 2020.
Yet if the price manages to make a rise and passes the MA50 barrier, investors will be wary for early signals of a bullish trend change.
The initial rise of the price is seen to test the resistance at the level of 1.31000 before continuing higher towards the SBR zone (support become resistance) at 1.31700-1.32000.
After today’s UK jobs data report, what will be a more important focus for the Pound is the inflation data report that will be published at the European session tomorrow (Wednesday).
