Price movements on the chart of the GBP/USD currency pair showed an interesting reaction when the United States (US) NFP employment data report was released in the New York session last Friday.
If observed, the price on Thursday has already made a surge to reach the height level at 1.23000.
Continuing trading on Friday, the price hovered at that height before plunging around 150 pips once the NFP report was published.
Reaching around 1.21500, the price bounced back 150 pips to close the week's final trade at 1.23000 again.
The US dollar strengthened on the initial reaction to the report being published with a 'green' reading, but ended trading at the end of the session weakly when the overall data component was quite mixed.
If examined, the price has also bounced after testing the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart to show a still bullish price movement signal.
The bullish pattern of the price continued at the opening of the market earlier this week as the price continued to rise past the 1.23000 resistance in the Asian session.
Analysts see the price increase going to the level of 1.24000 before continuing to around 1.25000 which is higher.
This week's price increase will mark the latest price high for a 6-month trading period.
However, investors still need to be prepared if a change in direction occurs again in the market when the price starts to move below the 1.23000 level.
Expectations for a drop in prices will see the 1.22000 zone be tested this week before signaling a bearish trend change.
The continued decline will lead to around 1.21000 and also 1.2000 which are the previous price focus levels.
