Price movements on the chart of the GBP/USD currency pair left an interesting impression on last week's trading session.
The drastic price movement followed the reaction to the United States (US) NFP employment data report published for September.
Job growth was higher than in the previous month, well ahead of lower forecasts. However, the average income and the unemployment rate remain unchanged.
The initial strengthening effect of the US dollar after the report was published saw the price plunge from above the 1.27000 level until it almost touched the 1.21000 level.
Then the price jumped again around 150 pips reaching a height of 1.22600 before the price hovered slowly at that height until the last session was closed.
Following the outbreak of the war conflict at the weekend, the price opened lower in the Asian session at the level of 1.22000 with a slow decline pattern on display until it continued to the beginning of the opening of the European session.
The Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart is tested as a support level during price formation.
A move back below the 1.22000 level risks a further drop with expectations of a return to the 1.21000 level.
If that level is broken, the price will continue to decline to test the level around 1.20500 before heading towards the concentration level at 1.20000.
On the other hand, if there is a price rebound above the 1.22000 level, the price increase is likely to surpass last week's level to reach 1.23000.
If the 1.23000 level fails to act as a resistance to stop the price, the price that breaks through higher will aim towards 1.24000.
