Examining the price movement on the chart of the GBP/USD currency pair, 3 consecutive days the price is supported by the support level of 1.3000 since last Friday.
In Tuesday's trading yesterday, the price which initially made an initial decline to the 1.3000 support was then seen jumping around 50 pips to the 1.30500 high following the reaction of the UK jobs data report published during the European session.
If observed on the data components, the overall reading is positive including the average income and unemployment rate gives a good picture for the development of the labor sector in the UK.
But the price fell back to support 1.3000 until the end of the New York session following the strengthening of the US dollar after the US inflation data was published exactly as forecast to jump again.
Thus, the Pound is seen as failing to sustain its appreciation weighed down by the strengthening of the US dollar which is expected to continue for a longer period.
Investors will also focus on the publication of UK inflation data at the start of today’s European session which will affect the movement of the Pound.
The price movement on the GBP/USD chart which is still moving below the Moving Average 50 (MA50) barrier level on the 1 hour time frame remains a bearish signal for the price.
If the price manages to extend the decline below the support zone of 1.3000 today, the target is for the price to move to the level around 1.29000.
A decline to that level will mark the latest low for a 2 -year trading period.
Yet an increase can be expected if UK inflation data published in the European session soon post a strong reading.
For bullish expectations, the initial resistance to be tested is at the level of 1.31000 before higher gains will return towards the previous 1.31700-1.3200 focus zone.
