The pound traded slightly higher in the European session yesterday as markets watched the latest UK jobs report published.
The UK unemployment rate in August showed a decrease to 4.0% compared to expectations to remain at 4.1% as in the previous month.
However, the 3-month average income index fell to 3.8% ahead of forecast while the number of unemployment benefit claims also jumped above forecast.
Looking at the movement on the chart of the GBP/USD currency pair yesterday, the price showed a rise in the European session testing the resistance level at 1.31000.
However, like the situation in the previous week, the level remains an obstacle for the price, seeing the price retreat back down again after touching it.
The price drop that occurred was driven by the re-strengthening of the US dollar trade when moving to the New York session.
The price then flattened around 1.30700 at the close of the session until continuing into the Asian session this morning (Wednesday), crossing above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart.
Investors are cautiously awaiting 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 succeeds in breaking through the resistance of 1.31000, the potential for higher increases will increase for the Pound.
The next target is for the price to move towards the concentration zone around 1.31700-1.32000.
However if the price moves in the opposite direction, a further decline could occur above last week's trading levels.
The focus zone is at the support of 1.30000 expected to be tested and the price will record the latest 8-week low.
