The price movement on the chart of the GBP/USD currency pair is seen to be still flat for several days since the end of last week.
The price moves in a range of around 100 pips with resistance at 1.22000 and support around 1.21000.
The pound remains on the doldrums, while the US dollar is expected to continue to drive price movements. However, the currency king has not given a clear direction of movement.
There was a reaction by the US dollar during the surprise meeting of the central bank of Japan (BOJ) in the Asian session on Tuesday yesterday, but the price movement then returned to level again continuing the following sessions.
The price drop on the GBP/USD chart yesterday was seen several times testing the 1.21000 support level, but failed to drop lower when there was a price rebound.
The price also hovers around the Moving Average 50 (MA50) level on the 1-hour time frame for investors to assess new signals of further price movement.
When resuming trading in the Asian session this morning (Wednesday), the price slowed down below the 1.22000 resistance zone which is seen to continue to be tested.
If the price manages to soar high breaking through the resistance, the next focus level is seen at 1.23000 which will be tested after investors digest the indication of bullish price movement.
The next extended rise will approach the resistance at the 1.24000 zone for the latest high of the week.
On the other hand if the price tends to continue the decline lower, the 1.21000 support level will once again be tested today.
If the price bounce like yesterday does not happen, it is likely that the price will drop lower towards the 1.20000 zone.
