The strengthening of the US dollar at the beginning of the New York session yesterday has prevented the increase in price on the GBP/USD currency pair chart at the opening of the week.
The US dollar managed to show its strength at the end of 2024 even though it only moved horizontally throughout the past week.
Market analysts see that there is still great potential for the US dollar to strengthen at the beginning of 2025 trading following the signals from the latest FOMC meeting.
If we look at the GBP/USD chart in the European session yesterday, the price that showed a slow increase was finally blocked at the resistance level of 1.26000.
Resuming trading at the opening of the New York session, the price plummeted rapidly, seeing it approach the 1.25000 level again.
The 1.25000 level remains a support zone for the price like last week and the price bounced back towards the end of the session trading.
The slow price movement in the Asian session this morning (Tuesday) was seen hovering around 1.25500 while testing the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the GBP/USD chart which was broken during yesterday's plunge.
If the price fails to rise higher, it is likely that the price will fall back to the 1.25000 zone.
A slip below that zone will prompt further price declines to continue with the target shifting to around 1.24000.
However, if the price rise succeeds in continuing, the resistance at 1.26000 will continue to be tested for price to break through.
If successful, the price will show a clearer bullish signal with the expectation that the increase will continue towards the target at the 1.27000 focus zone again.
