A change in price direction was identified on the GBP/USD currency pair chart on Tuesday, which retreated from a 7-month high.
The price retreated from the 1.34000 resistance zone as the US dollar began to regain its recovery momentum and returned to pressuring the Pound.
Market tensions began to ease when President Donald Trump withdrew his threat to fire Federal Reserve (Fed) Chairman Jerome Powell.
In addition, the Trump administration is also open to holding trade talks with China, which will ease concerns about the ongoing tariff war.
In the Asian session yesterday, Wednesday, the price was pressed to the 1.32300 level before being above the 1.33000 zone in the European session.
However, the increase failed to continue beyond the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the GBP/USD chart, which still shows a bearish signal.
The price fell again to continue trading in the New York session, but the decline was limited to around 1.32500.
The price movement was flat below the 1.33000 zone to continue trading in the Asian session this morning (Thursday) until the beginning of the European session.
If the price decline continues lower, last week's support zone at 1.32000 is expected to be tested after this.
If it breaks lower, several previous focus levels such as 1.31000 and 1.30000 will be broken again.
On the other hand, if the price makes a rebound and surpasses 1.33000, the MA50 barrier will be attempted to be broken and signal a trend change.
If the price increase continues higher, it will return to the 1.34000 resistance zone that was tested in trading earlier this week.
