Investors are likely to take cautious steps to trade on the GBP/USD price chart after early indications of a trend change emerged yesterday.
After a flat move on Monday, a surge started to be exhibited in the European session yesterday over 100 pips past the 1.24000 level.
The price initially dipped slightly to the 1.23300 level in the Asian session yesterday, before the price bounced back past the Moving Average 50 (MA50) level on the 1-hour time frame on the GBP/USD chart, erasing expectations for a price drop.
This was driven by the market's focus on the development of the debt ceiling which shifted momentarily to the focus economic data to be published including the United States (US) NFP employment report.
The debt ceiling agreement still needs to await a vote in the House and Senate before the agreement is signed.
China's economic data, which was published gloomy in the Asian session this morning (Wednesday), was seen to slightly support the US dollar again as a safe-haven currency that is in demand when concerns hit the market.
The price is hovering around the 1.24000 zone and higher gains could continue if the US dollar weakens in the following sessions.
The price increase is expected towards the 1.25000 level and if broken, the price will continue its climb to the next concentration zone at 1.26000.
On the other hand, if the US dollar is strong again, the price pushed down below the MA50 support will signal for the price to resume the previous bearish trend.
The price will test the support zone at 1.23000 and break lower, the latest low will be recorded with the target being around 1.22000.
