Market movements were seen as slightly gloomy as investors looked forward to the release of US gross domestic product (GDP) data and the annual Jackson Hole Symposium key event at the end of the week.
It is expected that the second reading of the US economic growth data will be slightly better than the first reading published last month, but it is still at a contraction level with the figure remaining at a negative level.
Investors are also gearing up for Federal Reserve (Fed) Chairman Jerome Powell's speech at the Jackson Hole symposium for guidance on further central bank tightening plans.
The Pound currency moved flat throughout the week with no key data to drive price movements until the end of the week.
Observing the price movement on the chart of the GBP/USD currency pair, the price was seen to make a jump last Tuesday from the lowest level of 1.17200 but failed to continue the price increase on Wednesday yesterday which showed more of a horizontal movement.
The decline shown in the price is supported by the support level of 1.17600 with the Moving Average 50 (MA50) level on the 1-hour time frame being examined by investors for further indications of price movement.
Continuing in the Asian session this morning, a slight increase in price is seen to cross the barrier level of 1.18000 again after moving above the MA50 support level, but it is still early to determine a clearer direction for the price.
Price movements are likely to be driven by the release of US data in the New York session, before clearer indications will be assessed based on Jerome Powell's speech tomorrow.
If the price manages to maintain the increase above the 1.18000 level, the resistance level at 1.18800 will be the focus to be retested before continuing the increase to the next resistance level around 1.19400.
On the other hand, if the price fails to increase and even shrinks again below the 1.18000 zone, investors will evaluate it as an early signal for the price to resume the previous bearish trend movement after moving below the MA50 level.
The price that shrank past the 1.17600 level and also the lowest level reached last Tuesday around 1.17200, analysts expect the price to reach the latest support level at 1.16000 as well as record the latest 2-year low.
