A new low was successfully recorded on the GBP/USD currency pair chart at the opening of the week yesterday.
The decline in price reached the support level of 1.21000 which continued the movement pattern at the end of last week when the reaction to the US NFP employment report was published.
This is the lowest price level recorded since November 2023.
However, the price was seen to have rebounded as soon as it reached 1.21000 which serves as the latest support zone.
The rebound of more than 100 pips saw the price surpass the 1.22000 level to reach around 1.22500 in early trading in the Asian session this morning (Tuesday), but the price retreated and leveled off above 1.22000 again towards the opening of the European session.
After the rise broke through the MA50 resistance line on the 1-hour timeframe of the GBP/USD chart, investors are watching as an early signal for a trend change.
If the rise continues successfully, the next target for the price is 1.23000 which was the focus of last week's trading.
A higher rise above the resistance will further strengthen the indication for a bullish price movement with the target shifting to around 1.24000.
However, if the US dollar strengthens again and pushes the price back below 1.22000, the support level of 1.21000 that was broken yesterday will be tested again.
A further decline that breaks through this level will record a new low which expects the price to reach 1.20000.
