Examining the price movement on the chart of the GBP/USD currency pair at the beginning of the week yesterday, the displayed pattern is still not showing a clear direction.
The price increase displayed in the Asian session yesterday failed to break through the resistance level at 1.30000, before the price retreated back down again.
The US dollar traded mixed with successful consolidation displayed in the New York session after a decline in previous sessions.
Confusion in the market has indeed been expected by investors this week looking forward to the presidential election event in the United States (US) which will begin tonight.
The uncertain situation is expected to last until the end of the week with the next focus turning to the results of the FOMC meeting early Friday morning.
As for the Pound, the results of the Bank of England (BOE) policy meeting will be in focus on Thursday with an expected 25 basis point interest rate cut to be implemented.
If the pressure is increasing for the Pound, the price can drop lower approaching the level of 1.2900 first and investors will examine the price reaction that will be exhibited.
The continued price plunge expects the price to record a new low above the 1.28500 level hit last week.
However, if on the other hand the price surges past the resistance of 1.30000 which failed to break through before, it will signal for a bullish price movement.
A move higher is targeted to head around 1.31000 before continuing to the next focus level.
