The Pound Sterling traded positively at the opening of the European market session yesterday with focus directed at the release of UK economic growth data for October.
The reading showed an increase to 0.5% in October, following a 0.6% contraction in September when output weakened in the wake of Queen Elizabeth's funeral.
Construction output in the UK rose 7.4% for the annual reading in October, marking the biggest jump since January (5.7% in September).
However, the Pound failed to maintain the strengthening in the New York session when the US dollar returned to trade a little stronger again in contrast to the weak movement it displayed in the European session.
Therefore, the price chart of the GBP/USD currency pair on Monday yesterday saw a price increase from a level near 1.22000 reaching a height of 1.23000 before retreating again.
The 1.23000 level remains a resistance for current price movement and resumes trading at the opening of the Asian session this morning (Tuesday), the price is seen hovering above the Moving Average 50 (MA50) support level on the 1-hour time frame of the GBP/USD chart.
Price movements are still expected to be volatile today as investors cautiously await the results of the FOMC meeting and also the Bank of England (BOE) on Thursday. Both are expected to raise interest rates by 50 basis points.
If the price continues to break through the resistance at 1.23000, the price is likely to record a new 6-month high.
The target for a move higher is for the price to head towards around 1.24000.
However, on the other hand, if the price fails to pass the 1.23000 resistance and bounces back below the MA50 support level, the price is expected to test the 1.22000 zone first before extending the decline lower.
Next, the price support level at 1.21000 will be the target to be tested after showing a bearish trend movement signal.
