Price movements in the market are seen as gloomy at the end of this week while investors are still waiting for the speech from Federal Reserve (Fed) Chairman Jerome Powell at the New York session tonight.
The focus in the New York session yesterday was on the publication of the United States (US) GDP economic growth data for the second quarter with the latest reading slightly better than -0.9%, i.e. at -0.6%, but still showing signs of economic contraction.
Therefore, the initial reaction saw a slight re-strengthening of the US dollar which mitigated losses on the decline in previous sessions, but the strengthening was seen to be limited as investors remained cautious for the expected 'turbulence' that awaits after Jerome Powell's speech.
Meanwhile, the Pound currency is still moving horizontally due to the absence of important economic data this week with developments in the UK also slow.
Thus, the price on the chart of the GBP/USD currency pair is seen to fail to make any encouraging movement in trading towards the end of the week despite the surge pattern last Tuesday which triggered early expectations for a change in trend.
Until continuing to the Asian session this Friday morning, the price remained hovering at the 1.1800 support zone which managed to curb a more severe price drop after the price continued the bearish trend last week.
The support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart is being observed by investors for further price movement signals after several price sessions are seen crossing above that level.
If the price is successfully boosted after Jerome Powell's speech, the resistance level at 1.18800 will be the focus to be tested first before the price continues to rise to the next resistance level around 1.19400.
On the other hand, if the price fails to continue strengthening and shrinks back below the 1.18000 zone, investors will evaluate the price movement to change to a bearish trend again.
The price that shrank past the 1.17600 level and also the lowest level reached last Tuesday around 1.17200 will then be expected to reach the latest support level around 1.16000 as well as record the latest 2-year low.
