Market movements were volatile in trading yesterday Thursday due to conflicting information regarding tariff negotiations between the United States (US) and China.
President Donald Trump previously claimed that negotiations with China were going well, but Beijing said that no negotiations were taking place with the United States.
Investors began to take cautious steps with expectations that risks could hit the market again after this.
The previous strengthening momentum of the US dollar also began to fade and appeared to move horizontally in trading in the New York session yesterday.
Examining the movement of the GBP/USD currency pair chart, the price has declined since the beginning of the week approaching the 1.13000 zone.
However, the price was seen to rebound near 1.14000 but failed to move up beyond the resistance zone.
In the trading session that continues into the Asian session this morning (Friday), the price retreated from 1.14000 and also broke through the Moving Average 50 (MA50) resistance line on the 1-hour chart, giving a bearish signal for the price.
The price decline could head towards around 1.13000 but needs to break through the support zone for a clearer bearish move.
If the decline continues, the price will head towards the previous focus levels at 1.12000 and 1.11000.
On the other hand, if the price manages to make an increase beyond the resistance zone of 1.14000, a bullish movement signal will be identified.
A resumption of the price will push the highs at the beginning of the week to be challenged before testing the resistance at 1.16000.
