The pound traded slightly higher on Thursday yesterday taking advantage of the US dollar's weakening situation ahead of the release of UK economic growth data in the European session today.
The United States (US) unemployment benefit claims data published in the New York session yesterday pushed the US dollar back to move weakly after a significant strengthening was shown last Tuesday.
The main focus will be on the US NFP jobs data report in the New York session tonight for the true direction of the US dollar hereafter.
On the price chart of the GBP/USD currency pair, the price that was flat above the support level of 1.18000 earlier started to show an increase again to the 1.19000 zone yesterday.
A bullish move above the Moving Average 50 (MA50) support level on the 1-hour timeframe on the GBP/USD chart signals that a trend reversal could occur again.
Continuing trading in the Asian session this morning, prices slowed down between the 1.19000-1.194000 zone after a daily increase of 100 pips was recorded yesterday.
The price increase higher if continued will return to the concentration zone at 1.2000 before reaching the height reached in the previous weeks at the resistance of 1.21400.
However, if the price starts to decline again below 1.19000 which becomes the SBR (support becomes resistance) zone for the price, the support level of 1.18000 will be tested again.
Further declines could occur if the US dollar continues to strengthen after the reaction to the NFP report and will push the price to reach around 1.17000 and record a recent 15-week low.
