Price movements on the chart of the GBP/USD currency pair at the beginning of the week yesterday also failed to provide a clear direction for investors.
Expectations for the US dollar continue to weaken and increase the price slip when the price instead fluctuates in a range of 50 pips only.
After Federal Reserve (Fed) Chairman Jerome Powell said last week that the central bank may not need to raise interest rates, Fed President James Bullard said yesterday that several more rate hikes are needed to fight inflation.
The hawkish statement is seen to have limited the further decline of the US dollar while investors are now awaiting the release of UK and United States (US) manufacturing and services PMI data.
Price movements on the GBP/USD chart slowly resumed trading in the Asian session this morning (Tuesday) around 1.24300.
The price that also moves around the Moving Average 50 (MA50) line on the 1-hour time frame on the chart has not yet given a clear indication of the future direction of the price.
If the surge is clearly displayed, the price will rise towards the 1.25000 level to test the resistance.
If successfully broken, a higher increase will be expected to reach up to the previous focus target which is in the 1.26000 zone.
On the other hand, if the price returns to decline, the price support level at 1.24000 that was reached last week will be tested again this week.
Next, if the level fails to bounce back in price, a lower drop will be shown after the latest lowest level target moves to 1.23000.
