Before the Pound could breathe a sigh of relief, the US dollar came under pressure again when the strengthening of the king of the currency was displayed in the New York session yesterday.
This follows the release of the United States (US) private sector ADP employment data for December 2022 with a reading that jumped higher than expected and the previous month's total.
Giving a positive signal ahead of the US NFP report today (Friday), the US dollar again pressured most other major currencies in the market including the Pound.
The price chart of the GBP/USD pair has seen a daily decline of up to 200 pips recorded for Thursday yesterday.
After the gloomy reaction to the minutes of the FOMC meeting, the price which was flat around 1.20700 has made an initial decline heading into yesterday's European session to the 1.2000 zone.
The zone failed to bounce back in price, instead prices plunged significantly in the New York session after crossing the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart.
The latest low was recorded when the price reached the concentration level of 1.18800 before there was a weak bounce again and the price resumed trading in the Asian session this morning around that.
It is likely that the price decline will continue further if the US dollar maintains its strengthening for the price to pass the current support level at 1.18800.
The next target is to reach the 1.18000 support zone and will record the latest 6-week low.
However if the NFP report has the effect of a rebound in prices, the resistance at 1.2000 will be the focus to be retested.
Passing that important zone will push the price higher to reach the previous resistance target which is around 1.21000 which has been a barrier to price increases for the past few weeks since the end of 2022.
