In contrast to the Euro which managed to maintain its strengthening momentum earlier in the week, the Pound Sterling instead experienced a decline in the European session yesterday following the reading of UK economic sector data published.
The less encouraging readings of the published UK manufacturing and services PMI data have pushed the price decline on the GBP/USD currency pair chart again.
But prices did not continue to decline lower in the New York session as the US dollar still moving weak in the market failed to add pressure on the Pound.
On the GBP/USD chart, the price initially hovered in the resistance zone of 1.26000 after the rise at the beginning of the week reached that level, the price was then seen making a jump back up to the zone of 1.25000 which is the latest support zone for the price.
1.25000 formed the RBS (resistance become support) zone and investors saw the price rise slightly above that zone until the end of the New York session trading.
However, investors began to prepare for further price falls after getting early signals for a bearish trend change as the price has returned to move below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
If the price continues to decline after yesterday’s price plunge, the price moving below the 1.25000 zone next will head to around 1.24000.
After testing the level, the next decline is expected to approach the 1.23000 zone.
On the other hand, if the price manages to continue its previous bullish trend movement, the price will jump to test the resistance again at the height of 1.26000.
And the price that manages to break the resistance will record the latest 4 -week high with the next target is to head to the 1.27000 zone.
