GBP/USD Gave Investors 'Nightmares' Last Week


 The GBP/USD chart in the past week presented a volatile movement that made investors sit back until the market closed its doors.

Revealing the impact of price movements, the central bank of England's (BOE) policy meeting last Thursday failed to support the strengthening of the Pound even though interest rate hikes were implemented.

In fact, the Pound experienced a significant decline after the strengthening pressure of the US dollar was added, supported by signals for continued policy tightening by the Federal Reserve (Fed).

The price on Thursday plunged to 260 pips touching a 2-week low around 1.11500.

However, on Friday a rebound occurred when the release of NFP employment data for October was somewhat disappointing with the unemployment rate rising higher than forecast.

The US dollar's retracement has fueled a surge of around 230 pips to regain a high of 1.13800 at the close of last week's trade.

Investors are assessing early signals for a bullish trend change after the surge in price has crossed the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart.

The price that opened slightly lower at the start of the Asian session this morning at around 1.13000 is seen hovering slowly around that area.

If the price surge continues at the beginning of this week, the price increase is seen to go towards the 1.14500-1.15000 zone to test the important resistance.

After successfully crossing the zone, continuing the bullish trend movement is seen to lead to the 1.16000 resistance zone which is the price opening level at the beginning of last week.

However, if the surge at the end of last week is only temporary and the price resumes the previous bearish pattern, the price drop is seen to test some concentration levels such as 1.13000 and 1.12000.

Next, the decline will continue to reach the target of 1.11000 which is an important support zone to pass before the price records the latest 4-week low.