The market changed direction yesterday saw the US dollar that strengthened after the FOMC meeting has again experienced a significant decline.
In yesterday's New York session, investors saw the US dollar weaken and could not continue the previous positive momentum even though the ISM survey data of the United States (US) manufacturing sector was published with a positive reading.
Investors are worried about the gloomy forecast of the US NFP jobs report due to be published later tonight, which was warned by the Chairman of the Federal Reserve (Fed) Jerome Powell.
Powell at the FOMC meeting in his statement also indicated that if the labor sector in the US worsens, it is likely that the Fed will accelerate the pace of interest rate cuts.
The significant depreciation of the US dollar in the New York session yesterday gave room for most major currencies to strengthen again, including the Euro.
If observed on the chart of the GBP/USD currency pair, the price once again tested the 1.08000 support zone after the reaction of the FOMC meeting yesterday.
Despite the attempt to break lower, the price only reached 1.07800 before a rebound was displayed at the 1.08000 level with the high reached at the end of the New York session around 1.08700.
Slow price movement horizontally at that level continued trading at the opening of the Asian session this morning (Friday).
If yesterday's bullish pattern continues today, a move higher is seen to try to break through the 1.09000 zone before overcoming the highs of the previous few weeks.
Next, the target is at 1.10000 to test which has been a resistance for the price since the early trading last January.
But prices can also plunge due to the reaction to the published NFP employment data report.
The initial plunge in price is expected to test support at 1.08000 again and is likely to give a momentary reaction.
A lower breakout will expect the bearish movement to continue with the target moving to 1.07000.
See the picture of the price chart of the EUR/USD pair below for your technical analysis reference.
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