A price bounce occurred on the chart of the GBP/USD currency pair following the market's reaction to the economic activity data published yesterday.
UK PMI showed manufacturing and services sector activity recorded a slightly lower reading for October, providing some caution.
However, if examined, both reading figures are still above the 50 point level, showing expansion in those important sectors.
While the United States (US) PMI did not show a significant numerical difference and failed to give an additional injection to the US dollar, the Pound took advantage of the situation to trade to recover.
The price movement situation for the two currencies was observed on the GBP/USD chart yesterday which showed the pattern of changing direction.
On Wednesday, the price showed a decline until it almost touched the 1.29000 level which recorded a recent 10-week low.
However, on Thursday yesterday the price started showing recovery again with an increase of around 70 to 80 pips before closing the New York trading session at around 1.29700.
The price movement that has started to be above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart is an early sign of a change in the price trend.
If the rise continues today, the resistance at 1.30000 is seen to try to be overcome before giving a more clear bullish signal.
The continued increase will expect a target at the height of 1.31000 to reach the price again.
However, if the rising pattern fails to continue, the price is likely to decline again towards the 1.29000 support zone which was approached before.
Junam below the zone will continue the previous bearish price trend while the price recorded the latest low again with the target moving to 1.28000.
See the picture of the GBP/USD pair price chart below for your technical analysis reference.
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