The bullish pattern continued on the chart of the GBP/USD currency pair in the European session yesterday, continuing the trend at the beginning of the week.
But the situation changed in the New York session when the US dollar strengthened again, pushing the price to fall lower.
Both the US dollar and the Pound will trade with risk ahead of the central bank of England (BOE) and FOMC policy meetings.
Both are expected to keep interest rates unchanged at previous levels.
The US dollar will be given more attention in the New York session tonight with the release of several important data including the ADP employment data report, JOLTS and the ISM survey of the United States (US) manufacturing sector.
On the GBP/USD chart, the price is seen showing an increase to the level of 1.22000 which is one of the price target markets.
However, as soon as it touches that level, the price continues to reverse direction and make a decline again until it passes the level where the surge started before that.
The drop has reached around 1.21200 before rebounding slightly to close the end of the New York session around 1.21500 and the slow price around that continued the opening of the Asian session this morning (Wednesday).
A further decline in price is expected to test the support level at 1.21000 before the price continues its decline towards the 1.20500 zone.
Meanwhile, if the rising pattern is displayed again, the 1.22000 resistance level touched yesterday will be the target to be tested again.
After successfully breaking through it, the target will move to the 1.23000 resistance zone which was almost tested on last week's rally.
