The currency market over the weekend still failed to show a clear movement with market sentiment still mixed with concerns still directed at the risk of an economic recession.
Data readings published in yesterday’s New York session have shown the manufacturing sector in the United States (US) slumped to a two -year low, while US services sector data was the five -month low for June.
Earlier, in the European session published data on the United Kingdom (UK) acts and services sector with readings that did not change as much as the previous month, but still put pressure on the movement of the Pound.
If we look at the price movement on the chart of the GBP/USD currency pair yesterday, the price is seen once again making a decline to test the support zone at 1.22000 but bounce back towards the resistance level of 1.23000.
Trading that continued in the New York session saw the price fail to break the resistance of 1.23000 and then decline again and move slowly until the end of the session showing the price is still 'stuck' in the sideway zone.
In the Asian session this morning (Friday), the price hovering above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame could be an early signal for the price to continue rising again before the close of trading this week.
If the price increase is successful, the resistance zone at 1.23000 is seen to be re -tested to be broken and the continued rise is seen to lead to the high level of 1.24000 to test the resistance zone which was also the focus last week.
The price increase will continue for further bullish movement, the 1.25000 zone will be the next target that will be tested to record the latest 2 -week high.
On the other hand, if the price declines again, the price support zone at 1.22000 will be tested again like yesterday's decline which still managed to keep the price from falling.
If the decline continues to break the 1.22000 zone, the price is expected to head around 1.21000 or may reach back to the 1.2000 support zone for the price to record the latest 1 -week low.
