The US dollar in early trading of the week looked positive, due to the market reaction to the US NFP employment data report published last Friday.
Based on the reading of NFP data, the increase in employment in the US for May was higher than the expected decline which made the USD move better than most other major currencies in the market.
However, unemployment rates and average incomes that failed to beat forecasts were seen to limit the strengthening of the US dollar.
Meanwhile, it stole the spotlight on early week trading when investors saw a significant surge in the value of the Pound during the European session yesterday.
Interestingly, the price increase that took place yesterday followed the market's reaction to the confidence vote that was held against UK Prime Minister Boris Johnson.
But after the results of the vote were announced in favor of PM Boris Johnson has invited a gloomy reaction on the price movement charted by the GBP/USD currency pair.
Last Friday, the price on the GBP/USD chart made a decline to the 1.25000 support zone after the reaction on the release of US NFP jobs data made the US dollar strengthen slightly.
But continuing with early week trading yesterday the price was seen to have made a rebound following the strengthening of the Pound ahead of the results of the vote of confidence against PM Boris Johnson.
After a daily rise of around 100 pips was recorded reaching the high level of 1.25700 in the European session, the price was seen making a decline again until the end of the New York session.
Continuing the Asian session trading on Tuesday morning, the decline resumed back to the 1.25000 support zone.
If the price increase occurs again, the price will make an increase from the support zone 1.25000 to the zone 1.26000 for the price to test the resistance zone.
If the price continues to break the resistance zone, the target for a higher rise is at 1.27000.
On the other hand, if the price continues to decline below the 1.25000 zone, the next further decline is expected to lead to the 1.24000 focus zone.
For lower declines, the next target is at 1.22800 for the price to record its latest 3 -week low.
