Examining market movements during yesterday's Tuesday trading session, the US dollar failed to continue its strengthening momentum as investors began to be wary of the release of the FOMC policy meeting minutes report that will be published early Thursday morning.
Before that, investors will first focus on the United States (US) retail sales data that will be published in the New York session tonight which is expected to also drive the movement of the currency king towards the end of the week.
Meanwhile, the Pound currency was seen to show no significant movement after the publication of United Kingdom (UK) employment data at the beginning of the European session yesterday. The pound continued to move lower before rising again in the New York session yesterday against the US dollar.
Next, investors will look forward to the release of UK inflation data at the opening of the European session soon which is also the focus of the central bank of England (BOE) in setting its monetary policy.
Assessing price movements on the chart of the GBP/USD currency pair, investors have seen a rebound in prices yesterday to provide an early indication of a change in price direction.
At first the price was seen continuing to decline in the European session towards the 1.20000 support zone, but like the situation in the past 2 weeks, once again the price bounced back recording a daily increase of around 100 pips.
The price increase was seen retesting the 1.21000 barrier level before the price leveled around that until the end of the New York session.
Investors began to assess the signal of a trend change after the price also slightly crossed the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart.
Moving on to the Asian trading session this morning (Wednesday), price movements remained flat in the 1.21000 zone with some slow gains displayed while UK inflation data at the opening of the European session is shortly awaited.
Expectations for a higher price increase are set to retest the 1.22000 barrier level that was the focus of late last week's trading as investors watched price plunges begin in that zone.
The continued price increase will target up to the 1.23000 level to record the latest 7-week high level.
On the other hand, if the price resumes its decline at the beginning of last week, the decline in price is expected to test the 1.21000 support zone again, which still manages to stop the price from falling further.
A drop in price above the MA50 support level will also trigger a signal for a bearish trend change again before the target for a lower drop is around 1.19400 and 1.18800.
