The Pound Sterling on Tuesday's trading yesterday showed a slight strengthening in the European session but lost again towards the end of the New York session.
Investors are still examining the development of central bank policy where the Bank of England (BOE) which previously raised interest rates at the same time also implemented measures to buy bonds to offset the risk of economic recession.
At the beginning of the European session yesterday, the UK employment data report was published and had a positive effect on the increase in the value of the Pound.
The unemployment rate in the UK in September eased to 3.5% from 3.6% previously, and the 3-month average earnings index rose to a better-than-expected 6.0%. However, unemployment benefit claims surprised the market when they surged higher for a period of more than 1 year.
Observing the price movement on the chart of the GBP/USD currency pair yesterday, the price started to decline in the Asian session to a level around 1.1000 following the US dollar still gaining an advantage in a risky market environment (risk-off).
However, the Pound managed to jump in price following the release of a good UK jobs report with a daily gain of around 180 pips recorded to a high of 1.11800.
Initial expectations for a trend change were dashed when the price then plunged back over 200 pips at the end of the New York session to reach around 1.09600.
The price movement that is back below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart again signals for the price to continue the previous bearish trend.
The expectation for a further drop in price is still seen to be towards the RBS (resistance become support) zone of 1.09000 which will present an interesting reaction before the indication for further price movement.
If the price succeeds in breaking lower, the price has the potential to reach the all-time low zone of 1.04000 hit at the end of last September.
However, if the price surge happens again, breaking the resistance at 1.11000 will expect the resistance level at 1.12000 to be tested after yesterday's rise failed to cross it.
A successful continuation higher is likely to lead to the 1.13000 level before last week's resistance zone at 1.15000 will be the next target.
UK economic growth data will be assessed on release at the start of the European session this afternoon and will also have an impact on price movements.
