After showing a rather excellent performance at the opening of the market earlier in the week, the Pound Sterling trades on Tuesday yesterday were more gloomy when it moved lower again.
Uncertain developments in the UK made investors take precautionary measures against the Pound currency with the actions and plans to be implemented by Jeremy Hunt as the new Finance Minister to be evaluated by the market.
Therefore, although the US dollar is still showing a gloomy movement due to the market sentiment that was slightly clarified by positive company earnings reports, but the Pound failed to take advantage of the situation to continue its strengthening.
As can be seen on the price chart of the GBP/USD currency pair, the price retracement took place yesterday after failing to sustain the surge at the beginning of the week.
After reaching a high of 1.14400 on Monday, the price showed a decline to around 1.12600 yesterday before closing the end of the New York session trading above the 1.13000 zone again.
Slow price movement continued in the Asian session this morning (Wednesday) hovering around the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart which will be evaluated for further price movement signals.
Beware if the price starts to break below the 1.13000 level, the decline is likely to continue to around 1.12000 for an early indication of a price trend change.
The bearish trend is more obvious if the price decline continues towards around 1.11000 before the next target is at the 1.09000 zone.
However, if the price returns to show a surge again today, the expected price increase will go to the resistance zone at 1.15000.
A move higher will mark the latest 5-week high with a target heading towards the 1.16000 zone.
