GBP/USD Plunges After Failing to Break $1.2700 Resistance!


The chart of the GBP/USD currency pair has been the focus of investors since last week to this week by displaying interesting price movements.

Investors are keeping an eye on the 1.27000 resistance level which was tested several times over the past week and continued in early trades this week.

After several attempts to make the increase, the price still failed to pass the thick 'wall' and the pattern of falling prices began to be shown on Wednesday yesterday.

In yesterday's Asian session, investors are already preparing for a decline when the price is seen to start moving below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the GBP/USD chart as a bearish signal.

The decline saw the price reach around 1.26200 before rebounding in the New York session as the US dollar suffered a decline following the reaction to the published data.

The United States (US) economic growth reading slightly deviated from the forecast, making the good performance of the US dollar in the previous session turn gloomy.

The price rose to levels around 1.26700 and tested the MA50 barrier before retreating slightly and flatly ending the New York session close at 1.26600.

Slow price movement continues in the Asian session this morning as prices still try to test the MA50 barrier.

If it still fails to pass it, the price is likely to go back down to the level reached yesterday.

Next, the focus level at 1.26000 is seen to be the focus that will be tested and the price reaction around that will be observed by investors.

As for the expectation of a price increase if it happens, the resistance of 1.27000 remains the target for the price to break through after many failed attempts before.

If it succeeds in finally breaking through, a higher increase will occur with the target moving to the height of the 1.28000 zone to be reached.