Early signals for a change in the price trend appeared on the chart of the GBP/USD currency pair during early trading yesterday.
This is due to the upward movement of the price that has crossed the resistance at 1.25000 after the price at the beginning of the Asian session crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart.
The MA50 level was an obstacle for the price during the last week, but at the beginning of this week the price started to move above it.
Yesterday's price increase reached almost 1.25500 but the price dropped again in the New York session to the 1.25000 zone and the price movement was also flat continuing trading in the Asian session this morning (Tuesday).
Testing the 1.25000 zone and the MA50 level, the price reaction will give an indication for further movement.
Investors will also be keeping a close eye on the reading of the UK jobs data report in the European session shortly which could drive the Pound's movement.
If the price surge occurs from the 1.25000 zone, the price will head to the next focus at 1.26000 and display a movement in a bullish trend.
A higher move above 1.26000 would expect the price to retrace the highs of 1.27000.
But if the price moves down below the 1.25000 zone, the bearish pattern of last week will continue again.
A drop in price if it exceeds the level reached last week could push the price towards around 1.24000 and record the latest 14-week low.
