The renewed decline in US dollar currency trading has seen a rebound in price on the GBP/USD currency pair chart.
This has been driven by the market's reaction focused on the speech by Federal Reserve (Fed) Chairman Jerome Powell regarding monetary policy.
A dovish Powell noted that rate hikes are unlikely to materialize in the near term, but there is room for continued policy tightening after this based on economic data indicators.
This has weakened the US dollar and reduced the previous pressure on the Pound.
On the GBP/USD chart, the price initially made an initial decline to the 1.21000 concentration level which became a 2-week trading low.
However, as expected, there was a price pull reaction in the important zone, which saw the price bounce back up again.
With the addition of the US dollar depreciation factor, around 100 pips of price increase occurred which almost touched the 1.22000 level which became an important resistance zone this week.
Ending the New York session, the price pulled back down to around 1.21400 and hovered below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart again.
UK retail sales data was observed in the European session with a more gloomy reading for September compared to lower forecasts.
The pound fell slightly after the published data saw the price drop almost to the 1.21000 level that was tested yesterday will be in the spotlight again.
If that important level is finally broken through, the price drop will continue towards the focus support zone at the beginning of last October which is around 1.20500.
However if the price shows a rebound, breaking the MA50 barrier will see the price retest the 1.22000 resistance zone.
If the breakout is higher, the bullish movement will push the price to reach the target at 1.23000.
