The US dollar failed to perform well in the early trading session of the week making other major currencies including the Pound take advantage of the opportunity to continue appreciation since last weekend again.
The market opening early yesterday, Asian session trading until the beginning of the New York session saw a positive movement of US stocks that pushed the US dollar further weakening.
But in the middle of the New York session, the US dollar was seen to record a slight strengthening again with the retreat of the Wall Street market making investors again wary of risky market sentiment.
For Pound currency trading, investors are waiting for the release of the UK employment data report in the European session this afternoon before the focus will shift to the release of UK inflation data on Wednesday.
Both data will be the focus of the Bank of England (BOE) which could influence the setting of monetary policy at the policy meeting in early August.
The price movement on the chart of the GBP/USD currency pair has displayed a pattern of price change after last week’s decline hit the latest 2 -year low of 1.17600.
Until continuing earlier this week, the price has made a rebound of around 270 pips with the high level reached during the New York session at 1.20300.
However, market sentiment, which began to be considered risky with the Wall Street decline, has pushed the price back down to the level of around 1.19400 continuing in the early trading of the Asian session on Tuesday morning.
Analysts still assess the price movement is still in a bullish trend with the price remaining moving above the support level of Moving Average 50 (MA50) on the 1 -hour time frame on the GBP/USD chart after last weekend's price increase has already passed that level.
If the price increase is maintained, the price has the potential to overcome the high reached yesterday to head to the focus level of 1.21000.
The next higher rise will target the 1.22000 zone for the price to record its latest high in the 3 -week trading period.
On the other hand, if the price starts to plunge lower beyond the MA50 support level, also passing the 1.18800 level will trigger an indication for a change in the bearish pattern on the price chart.
The next price is expected to decline back to the support zone of 1.18000 and is likely to hit a record low of the last 2 years if the decline continues.
