The price movement displayed on the chart of the GBP/USD currency pair at the end of this week seems to signal an exit from the 100 pips horizontal zone.
This situation is seen to be influenced by the renewed strengthening of the US dollar currency following the report of Israel's counterattack against Iran this morning (Friday).
The increasingly tense development of the war is being watched by investors, but what is certain is that risky market sentiment favors safe-haven trading.
A direct effect was seen on the US dollar in the Asian session this morning which strengthened after the previous session showed signs of recovery.
After flatlining below the 1.25000 resistance level throughout the week, this morning's Asian session saw the price drop to test the support level at 1.24000.
With the momentum displayed, the price is at risk of dropping lower if the support level is breached.
After testing the 1.24000 level, the price is seen to bounce back with price movement below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the GBP/USD chart remaining a bearish signal.
Continuing the opening trade of the European session, the price is back close to 1.24000.
If the price is pressed to fall lower below that zone, further declines will be shown with the latest target moving to the 1.23000 level.
The price will continue to record the latest low of the year, and the lowest for a 5-month trading period.
However, a price spike is not impossible with trading uncertainty at the end of the week.
A rebound in price after the price failed to break through the 1.24000 support would expect resistance at 1.25000 to be the target.
A higher rise could be a signal for a change in the bullish trend with the latest factors affecting price movements with the focus shifting to 1.26000.
