The pound traded slightly higher in the European session overnight as markets paid attention to the latest UK jobs report published.
The UK unemployment rate in August showed a decline to 4.0% compared to expectations to remain at 4.1% as in the previous month.
However, the 3-month average income index met the forecast decline to 3.8% while the number of claims for unemployment benefits also rose above the forecast figure.
Looking at the movement on the GBP/USD currency pair chart overnight, the price showed an increase in the European session testing the barrier level at 1.31000.
However, like the situation in the previous week, this level remains a barrier for prices to see prices retreat back down again after touching it.
The prevailing price decline was driven by the reinstatement of the US dollar trade when moving into the New York session.
The price then leveled off at around 1.30700 at the close of the session so that it continued into the Asian session this morning (Wednesday), hovering above the support line of the Moving Average 50 (MA50) on the 1 hour time frame on the GBP/USD chart.
Investors are cautiously waiting for signs of a change in the bullish trend while waiting for UK inflation data to be published at the opening of the European session today.
If the price increase finally manages to break through the 1.31000 barrier, the potential for further increases will increase for the Pound.
The next target is for the price to go to the support zone around 1.31700-1.32000.
However, if the price moves in the opposite direction, a decline lower may occur to overcome last week's trading level.
The support zone is at the support of 1.30000 which is expected to be tested besides the price will record its latest 8 week low.
