The price movement on the chart of the GBP/USD currency pair was quite turbulent on Tuesday yesterday with price fluctuations displayed.
After being flat in the Asian session, prices have started to plunge at the start of the European session following the reaction to the publication of the UK jobs data report showing gloomy figures.
The unemployment rate which is expected to remain at 3.8% has increased to 3.9% while the number of unemployment benefit claims if jumped to 46,700 beating the lower forecast.
After the price was seen plunging to the 1.24700 level, the price has bounced back 70 pips to a height of around 1.25400.
Then, the strengthening of the US dollar pushed the price back down below the 1.25000 zone in the New York session.
Several factors are seen to be supporting the strengthening of the US dollar at the moment in addition to the United States (US) retail sales data published yesterday also showing a positive increase for the month of April.
The price slowed around 1.24800 until it continued at the early opening of the Asian session this morning (Wednesday).
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The price movement that has been back below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart adds to the tendency for the price to continue its downward trend.
If the price continues to decline, the low at the beginning of the week around 1.24500 will be overcome before the price records the latest low.
The target is for the price to go to the next concentration level at 1.24000 and it is possible that the price could drop lower continuing the bearish trend movement.
On the other hand, if the price jumps back above the 1.25000 level and also crosses the MA50 barrier, this will be an early signal for a change in the bullish trend again.
The rise will continue to test yesterday's high before continuing the ascent to the next resistance level at 1.26000.
