The downward trend did not continue, instead the price on the chart of the GBP/USD currency pair moved horizontally on Thursday trading yesterday.
If you look at the movement from the beginning of the week, the price has shown a decline from the height of 1.27000 which is the resistance zone tested during the last week, but failed to break through.
The decline continued until the Asian session yesterday reaching the level of 1.25430 before the increase was shown again in the European and New York sessions yesterday.
It can be seen that the pattern of price increase is limited up to the level of 1.26000 which is the resistance during price making and the slow price movement that continued in the Asian session this morning (Friday) is also still flat below 1.26000.
However, investors assess that there is a small indication for a change in trend to occur again when the price starts to move above the Moving Average 50 (MA50) line on the 1-hour time frame on the GBP/USD chart, which signals the previous bearish movement is likely to end.
Thus, investors are watching the 1.26000 level which will be the next indicator for price movements in addition to being cautious ahead of the United States (US) NFP jobs report in the New York session.
If the price rises strongly above the 1.26000 level, the increase will continue towards the 1.27000 high level.
If the resistance is also successfully broken, the latest 4-month high level will be recorded with the latest target to be reached at 1.28000 to 1.29000.
Meanwhile, if there is a price drop, the closest level seen to be aimed at is 1.25000 with the expectation that there will be an interesting reaction displayed.
However, if the price continues to break down, the price decline is likely to be extended to around the 1.24000 concentration level.
