The chart of the GBP/USD currency pair in yesterday's Tuesday trading shows that the price is settling down, recording a lower level compared to last week's trading.
The situation is driven by the strengthening of the US dollar which still remains with positive momentum since the close of last week when the United States (US) NFP employment report was published well.
However, the current market situation is quite risky awaiting the release of US consumer inflation (CPI) data today which is an important indicator for the Federal Reserve (Fed) ahead of the approaching FOMC meeting.
The pound was seen trying to recover, but lost due to pressure from the US dollar.
It can be observed on the GBP/USD chart, the price tried to make an increase in the European session yesterday but failed to pass the 1.31000 level as the current resistance.
The price pressed down again in the next session to around 1.30500 which is the lowest price level for the 3-week trading period.
The price bounce occurred as trading headed towards the end of the New York session and continued in the Asian session this morning (Wednesday) approaching 1.31000 again.
The price also crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart which is seen as an early signal for a bullish price movement again.
If the rise continues past the current resistance at 1.31000, the price could potentially move higher towards the 1.31700-1.32000 zone that has been the focus of trading for the past few weeks.
Next, the height reached last Friday around 1.32400 will try to be reached again.
However, if the US dollar continues to add pressure to the Pound, the price is likely to drop further below yesterday's level.
Next, the latest lowest level will be recorded again with the expected price to reach around the 1.3000 zone.
