Investors remained wary of the Pound Sterling trading earlier this week to monitor further developments in the UK after Rishi Sunak was appointed as the new Prime Minister to replace Liz Truss who stepped down after holding the post for around 6 weeks.
Although the US dollar moved dismally on Monday yesterday, the Pound failed to take advantage of the opportunity to strengthen when it showed weak movements until the end of the New York session after being also pressured by the release of the UK manufacturing and services PMI data.
The US dollar, on the other hand, started trading at the beginning of the week with a left step when several factors were not seen to be on the side of the king of the currency.
After the Japanese intervention in the market at the close of trading last week, China's economic growth data published yesterday also affected the decline of the US dollar as the safe-haven currency.
On the price chart of the GBP/USD currency pair, a gloomy bearish pattern was displayed throughout Monday's trading yesterday, failing to continue the surge displayed at the end of last week's session.
The price has dropped from the 1.14000 level and is hovering around the 1.13000 focus zone again until trading resumes in the Asian session this morning (Tuesday).
However, there is still potential for the price to make an increase with the price movement still supported by the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart which stops the price from falling further.
If the price manages to bounce higher than the 1.13000 zone, the high level at the beginning of last week around 1.14400 is seen as the initial target for the price to be challenged.
Successfully surpassing that level, the price is seen to test the resistance zone at 1.15000 before the continued increase to the latest high level around 1.16000.
However, if the price plunges lower, the previous concentration levels such as 1.12000 and 1.11000 will be examined for a reaction to attract the price.
A change in the bearish trend of the price could encourage a lower fall up to the 1.09000 zone.
