The price chart of the GBP/USD currency pair on Wednesday yesterday was seen to fail to continue the previous surge pattern when it showed a flat reaction before shrinking again.
The US dollar's recovery from earlier in the week is seen to have limited room for the Pound to extend further gains to recent highs.
If observed, the United States (US) economic data published yesterday including the ADP employment data and the US service sector survey were gloomy, but the US dollar still managed to move slightly stronger.
Thus, this situation has prevented the price from breaking through the resistance at the height of the 1.25000 zone yesterday which was reached following the price surge last Tuesday to a 10-month record high.
In fact, the price started to show a decline in yesterday's New York session around 70 pips and moved below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart making investors alert for trend changes.
Ahead of the US NFP jobs data report at the end of the week which takes center stage, volatile price movements are to be expected.
It is possible that the price may continue to decline and will head towards the 1.24000 concentration zone for investors to observe the price reaction in that zone.
If the penetration is lower, a stronger bearish signal will push price expectations towards the critical zones before, namely at 1.23000 and also the 1.24000 zone.
However, if the price manages to bounce back to make an increase, the resistance at 1.25000 will be tested once again to be broken.
After returning ready to continue the bullish trend movement, the price is expected to record the latest high level towards the target at 1.26000.
