The Pound Sterling currency traded gloomy at the start of the week with the focus today (Tuesday) on the release of the UK jobs data report in the European session shortly.
A speech by the Governor of the Bank of England (BOE), Andrew Bailey yesterday gave his view on the inflation rate expected to decrease this year. But also expressed concern about the labor sector.
Investors will continue to be alert to the movement of the Pound ahead of the BOE central bank meeting which will take place in early February together with the FOMC meeting.
The price chart of the GBP/USD currency pair on Monday yesterday saw the price making an increase at the beginning of the Asian session almost reaching the high level of 1.23000.
However, the European session showed a retracement of prices up to 100 pips below the 1.22000 level before leveling off in that zone until the end of the New York session.
There are early signs of a bearish trend change for investors as price starts to move below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart.
Continuing trading in the Asian session this morning, the price is still hovering slowly in the 1.22000 zone while investors are cautious if the price decline continues.
If it declines lower, the price will return to around 1.21000 to test the RBS (resistance become support) zone.
The movement of the bearish trend will clearly expect the price to continue its decline until the level around 1.20000.
On the other hand, if the US dollar continues to move weakly, the price will show a surge again, continuing the bullish pattern of last week.
A rise from the 1.22000 zone will retest the resistance zone at 1.23000 which was almost reached yesterday.
A successful break above that resistance will mark a recent 5-week high with the next target at 1.24000.
