The GBP/USD currency pair chart showed a daily plunge of around 150 pips in trading yesterday Wednesday as the latest US (US) economic data was released with readings that supported the performance of the US dollar.
The US dollar strengthened after the ADP employment data recorded a strong increase for July and the US economic growth reading for the second quarter of 2025 was higher than expected.
The assessment of the strong US economy was also mentioned by Federal Reserve (Fed) Chairman Jerome Powell at the latest FOMC meeting early this morning after the interest rate was announced to remain at 4.50%.
If observed on the GBP/USD chart, the price showed a slow increase starting in the Asian session yesterday with an attempt to touch the 1.34000 level.
However, with the significant strengthening of the US dollar, the price was pressured down to penetrate the 1.33000 level.
The latest 11-week low was recorded at a price that reached around 1.32300 at the close of the New York session.
Slow price action continued into the opening of the Asian session this morning (Thursday) with a bearish signal that the price is below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the GBP/USD chart, suggesting a further decline.
If the decline continues, the price is likely to break through the 1.32000 level before the target shifts to around 1.31000.
However, if a strong rebound is displayed, resistance is at 1.33000 to be broken before the price gives a sign for a change in direction.
A further continued increase in price could reach the 1.34000 level again before displaying a clearer bullish movement.
