Assessing trading on Tuesday yesterday, the recovery of the Pound currency in the Asian session connected to the European session did not last long when it again received the urge to strengthen the US dollar in the New York session.
The US dollar, which was initially 'sleeping', rose again in the New York session, surprised by the release of positive economic data from the United States (US) with the outlook for the manufacturing sector at a good level for October's reading as well as US job openings data that rose higher compared to expectations last September.
Investors are now cautiously monitoring the movement of both the US dollar and the Pound ahead of the central bank of England (BOE) and Federal Reserve (Fed) policy meetings with each expected to raise 75 basis points.
The price movement on the chart of the GBP/USD currency pair is seen hovering in the 200 pips price zone range from the level of 1.16500 to 1.14500 since last week continuing to the beginning of this week.
After a downward pattern was shown in prices last Monday, there was a re-increase in prices in the Asian and European sessions yesterday, passing the 1.15000 level and reaching a height of around 1.15600.
However, the price was seen to plunge again in the New York session following the strengthening of the US dollar which pushed the price down to the level of 1.14500 again.
The price rebound was seen to continue at the opening of the Asian session this Wednesday morning, with the price hovering around 1.15000 testing the 1-hour Moving Average 50 (MA50) barrier level on the GBP/USD chart for bearish movement signals.
If the price continues to follow the downward pattern, it is likely that the price will drop below the 1.14500 level with expectations heading up to around 1.13000.
Next at 1.12000 and support 1.11000 will be the focus of the next price on the continued price drop.
However, if the price bounces back from 1.15000 and crosses the MA50 barrier, the initial signal of a change in price direction will push the resistance at 1.16000 to be retested.
Next, if the price manages to continue climbing past the main wall of 1.16000-1.16500, the latest 10-week high will be recorded with the target to reach 1.18000.
