The price movement pattern on the chart of the GBP/USD currency pair has changed slightly showing an increase but is seen to still be in a flat zone after a significant fall in prices last week.
After a signal to stop policy tightening by the Bank of England (BOE) at last week's policy meeting, the Pound suffered a sharp decline.
Coupled with the strengthening of the US dollar at the end of the week when the published US NFP employment data report was strong.
However, fortunately, the Federal Reserve's (Fed) signal this week is a little vague, making the trading momentum of the US dollar a little affected.
The pound survived a plunge into a deeper valley and started to show small gains on Wednesday.
However, the price increase is seen to be blocked at the resistance level of 1.21000 and the price hovered below that zone throughout the New York session yesterday.
A bit of confidence for the price increase to happen is when the price has started to move above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart.
If the increase succeeds in continuing past the 1.21000 resistance, the price will aim to reach the 1.22000 concentration zone.
A more pronounced bullish trend movement could push the price to reach the 1.23000 level again or to the previous 1.24000 resistance zone.
However, if the price falls back below the 1.2000 level, it is likely that the price will continue the plunge pattern displayed last week.
Next, the levels of focus on previous trades such as 1.19400 or 1.18800 are seen among the ones that the price will target in the continued decline.
