GBP/USD Reaches $1.2100, But Still Fails to Break Down


 The price chart movement of the GBP/USD currency pair was interesting to note at the end of last week.

The price drop that occurred was seen testing the 1.21000 level, but two days in a row the price bounced back up.

The Pound currency traded gloomy, but did not experience a significant decline due to the US dollar also losing its strengthening momentum following the dovish speech by Federal Reserve (Fed) Chairman Jerome Powell last week.

UK and US manufacturing and services PMI data will be watched on Tuesday and are seen to drive current price movements.

Also, US economic growth data for the preliminary reading in the third quarter of 2023 will be published on Wednesday and will be one of the important indicators for the Fed to determine monetary policy.

Last Friday, the price that has bounced back from the 1.21000 level has closed trading in the last session around 1.21600.

The slow price around that continued at the opening of the market earlier this week but is seen to be above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart, indicating that the signal is still bullish for the price.

If an increase is made, the price will retest the resistance level at 1.22000 which was tested several times and prevented the price from continuing to rise last week.

If that level is finally broken this week, the price increase will continue towards the next target at 1.23000.

But if the opposite happens, the decline will return to the 1.21000 level to test it again this week.

If the price has broken down, the zone around 1.20500 is seen as a target to go to which was the focus zone in early October.