Investors identified a change in the price trend on the chart of the GBP/USD currency pair on Thursday yesterday after the bearish pattern from earlier in the week did not continue.
In addition to the usual profit-taking activities at the end of the month and quarter, investors are also now wary of the risk of a 'government shutdown' in the United States (US).
At the New York session yesterday published the final reading for US economic growth for the second quarter.
The reading remained at 2.1%, missing forecasts for an increase of 2.2% and adding pressure to the current movement of the US dollar.
The price drop on the GBP/USD chart which almost reached the 1.21000 level last Wednesday saw a different pattern on Thursday yesterday when the price bounced back to the 1.22000 focus level again.
The price movement was flat in the 1.22000 zone in the Asian session this morning (Friday), but the increase that has passed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart signals a change in the bullish trend.
So, a higher rise will be expected to continue towards the previous concentration level which is around 1.23000.
If the momentum remains strong, continued gains could reach up to the 1.24000 zone again.
On the other hand, if yesterday's rebound is short-lived, the price is likely to fail to hold on to the 1.22000 level and experience a further decline.
Falling below the MA50 level will expect the 1.21000 zone to be tested and the price reaction around that will be observed.
If it breaks lower, the price will record the latest low with the next target moving to around 1.2000.
