The horizontal price movement is still shown on the chart of the GBP/USD currency pair on Monday yesterday, just like the movement pattern of last Friday.
The US dollar failed to show a clear direction with mixed movements for several early sessions at the market opening this week.
The positive sentiment of the market with the news of the operations continued by the giant technology companies in China after the movement restrictions were eased, will make the US dollar as a safe-haven currency experience depreciation.
However, market analysts view the US dollar as potentially strong this week supported by hawkish comments by Federal Reserve (Fed) Chairman Jerome Powell following last week's FOMC meeting.
On Monday's GBP/USD chart yesterday, the initial rise was shown by the price testing the 1.22000 level which is the current resistance zone for the price.
In the European session, the price managed to pass that level around 40 pips before plunging back 120 pips to the daily low around 1.21200.
In addition to the 1.22000 zone, the price is also seen to fail to cross the Moving Average 50 (MA50) obstacle level in the 1-hour time frame, which indicates that the bearish price movement will continue.
The market is waiting for a strengthening situation of the US dollar which will expect the price decline to continue to test the support zone at 1.21000.
Breaking through that zone will likely see the price reach up to around 1.2000.
However, continued trading today (Tuesday) saw a flat move at the start of the Asian session then tried to surge past the MA50 barrier and test the 1.22000 zone, but was pushed down again.
If the price makes a higher increase past the following resistances, the initial expectation of a bullish trend change for the price will be rekindled.
The continued increase is seen to react at some previous concentration levels such as at 1.23000 or resistance at 1.24000.
