The strengthening situation of the US dollar displayed on Tuesday's trading yesterday, most of the other major currencies came under pressure again including the Pound Sterling.
Richmond Federal Reserve (Fed) President Thomas Barkin delivered a hawkish view on monetary policy, supporting the strengthening of the US dollar in a still risky market environment.
However, investors will remain alert to the possibility that the US dollar could weaken again in the uncertainty heading into this week's Jackson Hole Symposium conference.
Trading today (Wednesday) will focus momentarily on the release of manufacturing and services PMI data in the UK and also the United States (US) which will affect both the Pound and the US dollar.
If you look at the chart of the GBP/USD currency pair, the price has already made an increase yesterday touching exactly the 1.28000 level.
True to the prediction that the attractive reaction the price will show in this important zone, the price has bounced back down around 80 pips and ended the trading of the New York session at the level of 1.27300.
The price plunge has again seen movement below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart for a bearish signal.
A slight rise in the Asian session this morning to the level of 1.27500, the price is seen testing the MA50 barrier.
The price is expected to resume a lower decline and test the 1.27000 support which still remains to restrain the price fall.
If the price has broken below that level, it is possible that the bearish movement of the price is more clearly displayed towards the latest target at the 1.26000 zone.
However, if the price goes up again, the 1.28000 zone will still be tested as the current resistance that needs to be broken.
If successful, the increase can be extended for the price to reach the high level of 1.29000 again which was also the focus level before.
