The price movement on the chart of the GBP/USD currency pair is seen hovering in a range of 100 pips between $1.2100 to $1.2000.
After showing a bearish pattern for the previous few weeks, prices started to slow down and are expected to end the end of 2022 more flat.
With the lack of focused economic data and the fact that banks are also closed starting the Christmas celebration and leading up to the new year, it is seen that it will be difficult for investors to assess the direction of price movements.
The US dollar was initially seen to be positively supported by the news of China's economic opening, then limited by concerns about an increase in Covid-19 infection cases.
If you look at the GBP/USD chart, the price that made a decline since the end of last week was blocked at the 1.2000 support zone which managed to rebound the price.
Likewise the situation that happened on Tuesday and Wednesday yesterday when the price rose again after testing the 1.2000 zone.
However, the 1.2100 zone still remains preventing further gains as the price is pushed back down towards 1.2000 at the end of the New York session.
If the decline continues after successfully breaking through the 1.2000 support zone, the price will record a new 4-week low.
The previously focused levels such as 1.19400 and 1.18800 are expected to invite a price reaction for a continued downward pattern.
On the other hand, if the price bounces back, the 1.21000 zone will remain watched until the price is successfully broken through.
Breaking that resistance will push the price higher towards the previous focus zone around 1.23000 after the signal of a trend change is clearer.
