Investors who examined price movements on the GBP/USD currency pair chart on Tuesday yesterday, focused on the issuance of services sector data in the UK and US.
If one examines the price movement on the GBP/USD chart at the beginning of the week, the price moves horizontally for minutes above the support level of 1.31000.
Yet an attractive price movement was seen on Tuesday yesterday with price increases and decreases taking place.
Initially the price seemed to signal for a bullish trend after the rise was exhibited in the Asian session connected to the European session past the Moving Average 50 (MA50) barrier on the 1 hour time frame as an indicator of the initial change of trend.
The Pound’s rise is seen supported by readings of published UK services PMI data slightly higher than expected.
But almost as soon as the price touched the resistance level of 1.31700, the price plunged again to break the support level of 1.3100 earlier in the week.
The decline of about 100 pips hit around 1.30700 at the end of the New York session.
If observed, the reading of ISM survey data for the services sector in the US is less encouraging, but the factor driving the strengthening of the US dollar is the hawkish comments by the Federal Reserve (Fed) Governor regarding their monetary policy.
Thus, investors are likely to expect the price to continue to decline lower with the target level to be tested is at the support zone of 1.3000.
However, if the upside happens again and the price moves again above the level of 1.31000, the resistance zone at 1.31700-1.32000 is still the focus to be tested again.
If the price manages to pass the rise in the important zone, the price will head to the high level of 1.33000 to continue the bullish trend movement.
