Examining the price movement on the chart of the GBP/USD currency pair this week, the important zone at 1.31000 is observed by investors as a psychological price level.
Previously, the price drop had reached around that, but the price failed to continue the lower drop following changes in the trading of the US dollar after the reaction to the published data.
The US dollar again moved weakly in the New York session yesterday following the JOLTS employment data recording a figure lower than forecast, the lowest since 2021.
Concerns about the economic risks of the United States (US) are rising again ahead of the September FOMC meeting which is approaching and some more indicators of employment data will be observed after this.
A trend change signal was seen on the GBP/USD chart yesterday after the price that did not continue its decline below the 1.31000 zone then surged past the Moving Average 50 (MA50) barrier line on the 1-hour time frame.
The rally reached the 1.31700 level before the price retreated slightly to close the New York session lower.
The price is flat around 1.31400 in the Asian trading session this morning (Thursday) with the expectation that the increase will continue past 1.31700.
The target is to go to 1.32000 and if a higher rise occurs, the high level of 1.32600 reached last August will be tested again.
Meanwhile, if the price is pushed down again, the 1.31000 zone as current support for the current price will be approached again to be tested again.
After breaking lower to the bottom, the price will resume the previous bearish pattern with the target of the next decline of the price being towards 1.3000.
