The move earlier in the week saw the US dollar look a bit gloomy due to the public holiday in the United States (US), with investors now focused on the publication of US services PMI data from the ISM survey which is expected to weaken like the US manufacturing survey data published last week.
On top of that, the Pound's movement strengthened slightly against the US dollar earlier in the week following investors' focus on the Bank of England's (BOE) interest rate hike signal which is forecast to make a 50 basis point increase.
Still, concerns over the Brexit issue are still making investors wary of the Pound, especially after the Labor Party said the UK would not return to the European Union (EU) and was ready to face Prime Minister Boris Johnson in the next election to continue the Brexit legacy.
Observing the movement on the chart of the GBP/USD price pair in the early trading session of the week, the price is seen continuing to rise above the level of 1.21000 and managed to break the barrier level of Moving Average 50 (MA50) on the 1 hour time frame for the initial signal of bullish movement.
Yet the price that reached the high of 1.21600 then made a further decline to close the New York session trading at the level of 1.21000 again.
It is expected that the price will continue the higher surge to retest the resistance zone tested at the beginning of the week (Monday), and if the rise continues, the price will rebound to test the 1.23000 price resistance which was the focus last week.
The higher price increase is seen to be the latest increase in 3 weeks to reach back to the high of 1.24000.
On the other hand if the price fails to continue rising and there is an indication of a bearish trend change, the current support zone of the price at 1.21000 will try to be passed before the price continues the lower decline.
If the decline continues, the support zone of 1.20000 which was reached last Friday will be tested before the price that continues the movement of the bearish trend will then head to the level of 1.19400 which was touched by the price in mid -June trading.
