Like the price movement at the end of last week, the price on the chart of the GBP/USD currency pair at the opening of trading earlier this week is still blocked at the 1.32000 zone.
Both the US dollar and the Pound were seen moving on par as the Federal Reserve (Fed) and the Bank of England (BOE) each raised their interest rates at a policy meeting last week.
Thus, the two currencies are seen to strengthen each other and this situation makes it a little difficult for investors to see a clearer direction for price movements on the GBP/USD chart.
The rise of around 80 pips yesterday still failed to break the resistance of 1.32000 before the price slipped back around 40 pips and moved below the level of 1.31700 at the close of New York session trading.
Continuing the Asian session this morning (Tuesday), the price made a decline from the 1.31700 level past the Moving Average 50 (MA50) level on the 1 -hour time frame as an early signal for the price to continue its decline.
For the initial decline of the price, the nearest support level seen at 1.31000 will be tested first before signaling a movement on a clearer bearish trend.
Further declines in prices will return to track the support zone at 1.3000 which was the focus of early trading last week.
Yet in a different situation, a successful price jump past the resistance zone of 1.32000 will give an impression for the price to resume movement in the bullish trend again.
The next price increase will target the level of 1.33000 to test the SBR zone (support become resistance) before going to a higher level.
Investors continue to be vigilant in judging between the Pound and the US dollar, which is more dominant to determine the direction of price movements.
