The price movement on the chart of the GBP/USD currency pair on Wednesday yesterday was seen as relatively flat compared to the significant plunge the previous day.
The increasingly heated war situation in the Middle East has injected the strengthening of the US dollar to recover from the previous fall due to the Federal Reserve's (Fed) monetary policy guidance.
In addition, at the New York session yesterday, the ADP employment report was published which recorded a good increase in the private sector in September.
Thus, analysts still see the potential for the US dollar to continue its strengthening, but need to be careful heading into the end of the week trading which will face the NFP jobs report.
On the GBP/USD chart, the price movement is seen to be flat below the 1.33000 level throughout Wednesday yesterday which became a resistance when making prices.
The price movement remains bearish below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the chart, but has not yet passed the level reached on Tuesday's decline which is 1.32400.
The price drop is still expected to continue to record a new low towards the 1.32000 concentration zone.
Breaking through the zone will push the decline lower to continue with the target moving to around 1.31000.
On the other hand, if the price makes an increase past the 1.33000 resistance and also overcomes the MA50 barrier, investors will evaluate it as an early signal for a change in the direction of the price trend again.
The next increase will return to the resistance zone that was tested since last week which is at 1.34000 before the price is able to record the latest record high again.
