The price movement on the chart of the GBP/USD currency pair is seen to be still 'stuck' in the 100 pips range from last week to yesterday's trading Tuesday.
After last Monday the price once tested the resistance level of 1.27000 and still failed to break through it, investors witnessed a further drop in price.
However, the price drop displayed until yesterday's European session was seen to reach around 1.26200 and still failed to touch support at 1.26000.
The price rebound occurred again in the New York session yesterday following the market's reaction to Federal Reserve (Fed) Chairman Jerome Powell's speech that weakened the US dollar.
The dovish assessment of the tone of Powell's speech made investors expect the Fed's preparations to switch to policy easing.
But it is still too early to make a decision as the Fed is expected to examine the next indication this week on the NFP jobs report that will be published.
The price increase on the GBP/USD chart is seen again approaching the resistance level of 1.27000 but the price is flat below that zone in the Asian session this morning.
Price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart triggers an early signal for a bullish trend to begin.
However, the price still needs to break through the 1.27000 resistance first to get out of the horizontal zone.
If finally the price manages to break out, a higher increase can be expected to head towards the next concentration zone at 1.28000.
On the other hand, if the price falls after failing to pass 1.27000, it is likely that the price will approach the level of 1.26000 which has yet to be touched.
And it is not impossible for the latest low to be recorded when the decline continues with the target moving around 1.25000.
