GBP/USD Rises, Never Touches $1.2700 Before Retreating Down


The analyst examines the changes in price patterns that prevailed on the GBP/USD currency pair chart last Thursday.

Initially the price increase continued into the European session following last Wednesday's spike, but in the New York session prices began to show a decline again.

After the increase reached a high of 1.26800, the price fell again to close trading at the end of the session at around 1.26400.

This situation of changing direction was caused by the recovery of the US dollar when the market assessed the facts by several Federal Reserve (Fed) experts who had a hawkish tone towards monetary policy.

However, investors will be alert and expect any possibility to occur today following the publication of the United States (US) NFP employment data report in the New York session later.

Continuing trading today (Friday) on the GBP/USD chart, prices fell in the Asian session testing the support line of the 50 Moving Average (MA50) on the 1 hour time frame which investors are watching for further direction.

If the price bounces up from there, the overnight high will try to be overcome before the price also tests the 1.27000 zone.

If it breaks higher, the price will be pushed up to target the next support zone which is at a height of 1.28000.

Meanwhile, if price declines are also shown at the end of this week, the 1.26000 level is seen as the area that will become the closest price support.

The price is at risk of diving lower and revisiting the low level at the beginning of the week around 1.25400.