The US dollar was seen moving weak in the European session continuing into the New York session yesterday following the market reaction to the 10 -year US treasury yield which made a decline below the 3.00% level again.
In addition, US Treasury Secretary Janet Yellen testified on the 2023 Annual Fiscal Budget saying the US economy was facing challenges from “unacceptable levels of inflation” causing the US dollar to depreciate slightly from previously earned gains.
Meanwhile, the Pound rebounded after the results of a confidence vote were in favor of UK Prime Minister Boris Johnson.
The price movement on the GBP/USD pair chart is seen to have made a decline reaching the level of 1.2430 before rebounding again in the New York session.
Initially, the price made a decline of around 100 pips in the Asian session, and then rebounded 170 pips reaching a high of 1.26000 until the end trading of the New York session.
However, the price increase did not manage to pass the resistance of 1.26000 and the price hovered in the zone until the continuation of the Asian session this morning (Wednesday).
If the price continues to rise, the price that passes the 1.26000 zone will head to the next high target at 1.27000 for the price to test the resistance zone.
For the continued higher rise, the further price target is expected to move towards the resistance zone of 1.27500.
On the other hand, if the price does not manage to continue rising above the 1.26000 zone, it is likely that the price will make another decline and retest the 1.25000 zone before continuing further decline to the focus zone at 1.24000.
For a lower decline, the next target is at 1.22800 for the price to hit the latest 3 -week low.
