The bullish pattern of yesterday's Thursday trading did not continue on the chart of the GBP/USD currency pair as it closed the August 2023 curtain.
Driven by the US dollar, the king of currencies again showed a recovery from the significant decline experienced on Wednesday when it was affected by the economic data of the United States (US) that had been published.
Being an important indicator for the direction of the Federal Reserve's (Fed) monetary policy, the ADP employment data recorded a declining reading, giving a negative signal for the NFP report that will be published today.
In addition, the second reading for US economic growth (GDP) for the second quarter of 2023 surprised the market when it dropped to 2.1% compared to the forecast to remain at 2.4% as read earlier last month.
During the decline of the US dollar, the price on the GBP/USD chart has surged to a high of 1.27450 but the rise did not continue yesterday.
The price showed a drop back to around 1.26600 in the New York session yesterday and the flat price around that continued in the Asian session trading this Friday morning.
Giving a bearish signal, the price has moved below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the chart after plunging back below the 1.27000 level.
Therefore, investors will expect a drop in price to return to the 1.26000 concentration level.
And if the price continues to fall, it is likely that the latest low will be recorded with the target being in the 1.25000 zone.
However, any surprises can happen when the NFP data is published later where prices also have the potential to jump if the US dollar experiences a worse decline.
Prices that surge past the 1.27000 zone will try to retrace the highs reached last Wednesday before continuing to climb higher.
The next resistance for the price is at the 1.28000 zone where the zone has remained blocking the price increase for the last few weeks.
