After leveling off last Tuesday, the price movement on the chart of the GBP/USD currency pair showed a surge on Wednesday yesterday showing early signs of a change in the price trend.
As the market approaches the end of the week, the US dollar starts to weaken as investors become increasingly wary of the risks to the important data that will be published, namely the US NFP employment report.
But first, the ADP employment data was focused on in the New York session yesterday, which measures the private sector with a lower reading than forecast.
This further increases the uncertainty following employment data becoming one of the important indicators for central banks in setting their monetary policy.
If observed, the latest low was recorded around 1.20400 before the price showed a jump of 140 pips breaking through the 1.21000 level.
The price that reached a height of around 1.21700 has also broken through the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart, becoming an early signal of a bullish trend change.
If the move higher continues today, the 1.22000 level will be tested as the nearest resistance to be broken.
If it succeeds, the increase will continue towards the next target at 1.23000 and overcome the height of the price reached last week.
However, if the price pulls back down again, a break below 1.21000 signals a further decline is imminent.
The level reached yesterday will be overcome for the price to reach around 1.20000 for the latest lowest price record since last March.
