The movement of the US dollar currency remained gloomy in the trading session of Asia connected to the European session yesterday (Tuesday), but in the session of New York saw a slight strengthening of the king of the currency compared to several other major currencies including the Pound.
Although the Pound is still showing a gloomy performance, it is seen to be moving more compared to the US dollar which is still gloomy as investors are cautiously awaiting the release of inflation data from the United States (US) which is expected to shrink slightly for the July reading.
The forecast reading of the data added to the indication that the Federal Reserve (Fed) is likely to continue its aggressive interest rate hike for the third time by 75 basis points at the September meeting after the NFP employment data published last week was also encouraging.
Meanwhile, the Pound currency is seen to be affected by the Russian oil embargo issue on the Druzhba pipeline which will threaten the energy industry in Europe including the UK.
Because of that, the United Kingdom (UK) government is also seen to be ready to face the threat of a lack of energy supply for industry and consumers in the winter.
Looking at the price movement on the chart of the GBP/USD pair yesterday, the price showed an increase to a level around 1.21300 but retreated below the 1.21000 level and then was seen hovering horizontally around the 1.20700 level at the end of the New York session.
Continuing in the Asian session this morning (Wednesday), the price is still moving horizontally and is seen hovering below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart which shows a bearish signal for the price.
If the price drop occurs in today's trading, the price is seen to test the support level of 1.20000 which previously saw a price rebound during the dive last Friday.
A lower decline beyond the zone will continue until the concentration level of 1.19400 or 1.18800 to record the latest 3-week low.
On the other hand, if the price rises again, the 1.21000 barrier will be tested before the price continues to increase beyond the MA50 barrier to signal a bullish trend change on the price chart.
A higher price increase will retest the resistance barrier level of 1.22000 which was the focus zone last week before the increase expected to continue will reach the height of the 1.23000 zone.
