The bullish pattern on the chart of the GBP/USD currency pair failed to continue on Tuesday yesterday after the price managed to record a new 12-week high.
The US dollar, which had weakened earlier, recovered again, seeing a drop in prices in the European session yesterday.
However, the strengthening of the US dollar did not continue when the JOLTS employment data published in the New York session showed a reading lower than forecast, and the lowest for a period of more than 3 years.
This prompted a price rebound from the 1.27500 level that was hit to the 1.28000 zone again.
The price is hovering between the 1.28000 level and hovering above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart as the market awaits the next indication.
ADP data that measures the private employment sector in the United States (US) will be watched in the New York session later tonight.
If the reaction to the published data prompts a rebound in price, the 1.28000 resistance zone will try to be broken again before the price registers a new high.
The target for a higher rise is towards around 1.29000 anyway.
However, if the price drops below the MA50 support line, it will signal the beginning of a bearish trend for the price.
The initial drop in price is seen to return to the support level of 1.27000 for the price to test the RBS (resistance become support) zone which is still thick from being breached.
The continued decline after breaking through the zone is seen to target around 1.26000.
