Following in the footsteps of the Euro’s decline yesterday, the Pound Sterling was also seen exhibiting a rebound after a surge in trading last Wednesday.
Examining the price movement on the chart of the GBP/USD currency pair, the momentum of the surge on Wednesday after the release of UK inflation data, stagnated when the decline resumed on Thursday yesterday following the re -strengthening by the US dollar.
The price that flattened below the 1.31500 high then plunged around 100 pips testing the Moving Average 50 (MA50) support level on the 1 hour time frame.
After a slight rebound at the end of the New York session to the level around 1.30800, the price again showed a decline again in the Asian session this morning (Friday) at a slower pace.
If the decline continues today, the support zone at 1.3000 will return to the focus for re -testing.
Previously, the price has been flat at that level since last weekend and continued into the beginning of this week.
If the price decline finally breaks the support zone, the next price decline is seen to be heading to the level around 1.29000.
But if the price manages to make a rebound, the initial resistance at 1.31000 will try to be overcome before the price is about to overcome the high level reached yesterday.
The continued rise is seen to re-test the focus resistance zone at 1.31700-1.32000 after several weeks of prices moving below that zone.
