Expectations for the Pound to strengthen in Wednesday's trade yesterday faltered as the British currency was among the lowest performing.
The pound is expected to strengthen following a UK inflation data report published in the European session yesterday with encouraging figures. This supports the actions of the central bank of England (BOE) which had raised interest rates at a policy meeting last week.
On the price chart of the GBP/USD pair, the price at the beginning of yesterday’s session has risen touching the latest 3 -week high at 1.33000.
Yet the price plunged back around 120 pips again and slipped below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame making investors wary of trend change signals.
However, the 1.32000-1.317000 zone is seen as the current support zone for the price that curbs the lower decline.
Even so, it is not impossible for prices to continue their decline beyond the zone with the further strengthening of the US dollar over the weekend.
The price will return to the level of 1.31000 before the continued decline on the bearish trend movement is seen to retrace the support zone of 1.3000.
However, if the price manages to rebound above the level of 1.32000, the high of 1.33000 reached yesterday will return to the focus again for the price to test the resistance.
The higher rise that was successfully continued will target the level around 1.34000 which was the focus zone in early March trading.
Readings of manufacturing and services sector data reports in the UK and the US that will affect the movement of the Pound and US dollar over the weekend.
