Failing to maintain the strengthening momentum after the NFP data, the US dollar moved dismally in the early trading session of the week giving room to other major currencies including the Pound to register gains yesterday.
The higher-than-expected US NFP jobs growth in July triggered a successful surge in the value of the US dollar at the end of last week's trading session.
Making investors wary of the movement of the US dollar earlier in the week, the market's focus seems to be turning to the release of US inflation data on Wednesday with expectations of a shrinking figure.
Investors are beginning to expect the Federal Reserve (Fed) to continue its aggressive interest rate hike of 75 basis points at its latest meeting, compared to earlier expectations for rate hikes to be slowed.
Meanwhile, the Pound currency is seen to be driven by the release of UK gross domestic product (GDP) data at the end of this week with the forecast of economic contraction for July and also for the second quarter.
If you look at the price movement of the GBP/USD currency pair yesterday, at the opening of the trading session at the beginning of the week the price was seen to continue to rise after the price bounce last Friday which reached the support zone at 1.2000.
The rise in prices was seen to break above the 1.21000 level, but failed to overcome the price decline exhibited during the NFP employment data report at the end of last week, before prices closed the New York session trading below the 1.21000 level again.
Continuing in the Asian trading session this morning (Tuesday), the price is still moving horizontally below the 1.2100 barrier level and the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD price chart, signaling for prices to remain moving in a bearish trend to continue last week's movement pattern.
If the price continues to decline, the price support zone at 1.20000 will be tested again this week before the zone is broken for the price to continue further bearish trend movement.
A further drop in price is seen to test several concentration levels at 1.19400 and 1.18800 among them before reaching the main support zone at 1.18000 to record the latest 4-week low.
Meanwhile, if the price resumes yesterday's rising pattern, the 1.21000 barrier level will be passed before the price continues to increase towards 1.22000 to test the resistance level after the price has also passed the MA50 barrier to signal a bullish trend change.
A higher upside price is seen targeting up to the 1.23000 barrier for a record 1-week high above the upside shown by the price in early trade last week.
