The aggressive price movement displayed on the chart of the GBP/USD currency pair yesterday saw a daily jump of up to 100 pips.
At first the price went down in the European session yesterday reaching back to the 1.24000 level like last Tuesday's trading, which remains a support level for the price.
From there, the price has surged to reach a high of 1.25000 as the US dollar traded weak until the opening of the New York session.
However, the situation changed when the price started to decline again to around 1.24300 to close the trading session.
A slight bounce at the opening of the Asian session this morning (Thursday) saw prices remain above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart after a bearish price tested it.
If the gains continue today, the resistance at the 1.25000 level touched yesterday is likely to be tested again.
A break through that level would expect the rally to continue towards last week's high around 1.25400, which was the price level before the plunge when the NFP data was published.
However, if the price makes a decline below the MA50 support level, the expected price movement may change to a more bearish one.
The falling price will once again test the support level at 1.24000 and the price reaction will be observed.
If it has failed to bounce back, the price that penetrates lower is seen to be heading towards the 1.23000 support zone target.
