The price recovery that occurred on the chart of the GBP/USD currency pair yesterday could be an early signal for a change in price direction.
The market has seen the downward pattern displayed since last Friday continued on Monday and did not continue on Tuesday's trading yesterday.
This means that the strengthening momentum of the US dollar has not been successfully maintained, giving room for the Pound to rise again.
Analysts, however, still maintain projections in favor of the positive performance of the US dollar based on previously published economic data.
If you look at the GBP/USD chart yesterday, the price showed a different pattern compared to the beginning of the week, which was to make an increase again until it reached the 1.26000 level at the end of the New York session.
Being an early signal for a bullish trend change, the price is seen to have crossed the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the GBP/USD chart.
The slow movement of the price hovering around 1.26000 continued trading in the Asian session this morning (Wednesday).
If yesterday's uptrend continues, the price is expected to head towards the next concentration level at 1.27000.
Next, the high level in the previous weeks around 1.27700 will be the target for the continued increase before moving to the resistance zone of 1.28000.
On the other hand, if the price fails to hold above the 1.26000 zone, the decline is likely to occur again, seeing the price drop back below the MA50 line.
The continued decrease will lead to the 1.25000 support zone which was almost touched by the price during the movement at the beginning of last week.
A continued decline lower would mark the price's latest low for the 12-week trading period.
