After the strengthening on Tuesday, the US dollar continued to strengthen against other major currencies including the Pound which continued to weaken to lower levels in Wednesday's trading.
The release of US services PMI data from the ISM survey recorded a better -than -expected decline but the reading was slightly lower than the previous month.
The focus on the minutes report of the FOMC meeting earlier this morning was seen to reflect a hike of around 50 or 75 basis points by the Federal Reserve (Fed) at the next FOMC meeting in late July to curb rising inflation in the US.
Developments in the UK, the political crisis is increasingly at a critical level with reports that 40 officials are said to have resigned in protest against Prime Minister Boris Johnson.
Following the resignations of Finance Minister Rishi Sunak and Health Secretary Sajid Javid, many other key officials reportedly followed in the footsteps of the move urging PM Boris to step down, but he insisted.
In addition, most important members of the Conservative party under the leadership of Boris Johnson also reportedly left the party.
Examining the chart of the GBP/USD currency pair, the decline in Wednesday's trading was slower than the previous day's plunge.
The price however has hit the latest lows again hitting around 1.18800, slightly lower than the daily lows recorded on Tuesday.
Failing to maintain the bearish momentum in the New York session, the price slightly rose back to the level of 1.19400 at the end of the session and continued in the Asian session trading this Thursday morning, the level is trying to be surpassed.
A successful continued higher rise will face the Moving Average 50 (MA50) barrier on the 1 -hour time frame which will signal for further price movement.
Next, the SBR (support become resistance) zone of 1.2000 will be a resistance for the price on the rising pattern that continues before the expectation for the price to go higher if it passes the zone.
On the other hand, a lower decline is expected for the price to pass the 1.18800 level hit yesterday and record the latest 2 -year low based on the tendency of the price movement on the analyst's assessment.
For a lower decline, the 1.18000 zone will be the next target to record the lowest price level since March 2020 trading.
Investors will be wary of the risk of volatile price movements over the weekend ahead of the US NFP jobs data report which is the main focus of the market before this week's trading draws its curtain.
