The price chart of the GBP/USD currency pair is seen displaying a mixed movement pattern following the reaction to the speech by Federal Reserve (Fed) Chairman Jerome Powell regarding the central bank's monetary policy guidance.
The US dollar weakened briefly in the New York session before returning to show consolidation towards the end of the session.
This has had the effect of volatile movement on the GBP/USD chart and made investors more cautious waiting for clearer price direction signals after this.
If observed the price has initially moved down past the support level of 1.20000 and reached around 1.19600.
But a surge occurred in the New York session to record an increase of 130 pips almost touching the 1.21000 level.
Then the price made a drop back to the 1.2000 level and bounced a little before the price movement slowly closed the trading session.
Resuming trading in the Asian session this morning (Wednesday), the price was flat around 1.20500 as investors remained cautious with increasing risks.
If the price dips lower below the 1.2000 zone, the decline will continue to record a new 5-week low.
Some concentration levels such as 1.19400 and also 1.18800 are among those seen to be targets to be tested by the price on the continued decline.
However, if the price succeeds in surging beyond the resistance at 1.21000, the signal of the start of a bullish trend will push the price towards the 1.22000 zone.
The price can continue to rise higher if the US dollar clearly trades weak again with price targets to reach 1.23000 and 1.24000 as in the previous week.
