Expectations for continued price increases on the chart of the GBP/USD currency pair slipped as the price showed a significant plunge in yesterday's New York session.
This situation is due to the continued strengthening of the US dollar which is supported by the economic data of the United States (US) published.
US unemployment benefit claims data as well as the University of Michigan's consumer confidence survey came in with encouraging numbers.
Investors will be cautious in today's trade with US markets closed for Thanksgiving Day while the focus will be on UK manufacturing and services PMI data in the European session to monitor the Pound's reaction.
Examining the GBP/USD chart, the price hovering at the height of 1.25500 has shown a 100 pips jump to reach 1.24500 at the beginning of the New York session yesterday.
However, the price bounced back towards the close of the end of the session to around the 1.25000 zone which was the focus before.
The price tested the zone until the opening of the European session, but the price movement is still below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart, signaling a bearish trend change warning.
If the price rebounds to make a downward move, the level reached yesterday will be overcome before the price heads to last week's support zone around 1.24000.
A more clear bearish movement is displayed next, expecting a decline to test the 1.23000 focus zone.
However, if the price rebounds again at the end of the week, the price increase has the potential to record new highs again.
Overcoming the level reached before, the next price will target the height at 1.26000 which is expected to give an interesting reaction in that area.
