GBP/USD Hits 2-Week High Before Plunging 100 Pips!

<p>&nbsp;After several days of flat price movement, investors were a little shocked by the price vibrancy on the GBP/USD chart in the New York session yesterday.</p><p><br /></p><p>This is due to changes in the value of the US dollar currency with the market's reaction to the economic data of the United States (US) published.</p><p><br /></p><p>The beginning of the New York session saw a significant strengthening of the US dollar following the US ADP employment data which measures the increase in the private sector for June, which jumped significantly above the previous month's reading.</p><p><br /></p><p>In addition, the ISM survey of the US service sector was also strong in June with figures higher than forecast and also the previous month.</p><p><br /></p><p><br /></p><p><br /></p><p>If observed on the GBP/USD chart, the price that was flat above 1.27000 throughout the Asian session then displayed a significant increase reaching 1.27800 at the same time recording the latest 2-week high.</p><p><br /></p><p>However, the opening of the New York session saw a change in the situation when the strengthening of the US dollar plunged the price to pass the 1.27000 level again and reach around 1.26740.</p><p><br /></p><p>The price however did not extend its fall as it bounced back half of the previous plunge and closed the session's closing trade around 1.27400.</p><p><br /></p><p><br /></p><p>Still signaling for a bullish move as prices bounce back above the Moving Average 50 (MA50) support level on the 1-hour timeframe on the GBP/USD chart, however, investors are cautiously awaiting the release of the US NFP jobs data report tonight.</p><p><br /></p><p>If the US dollar weakens, the price is likely to rise above yesterday's highs to record new highs.</p><p><br /></p><p>The bullish target is to reach the resistance zone at the height of 1.28400 which has been reached in the past few weeks and is the highest price record since April 2022.</p><p><br /></p><p>While the forecast for price declines, falling below the MA50 support level and passing 1.27000 will trigger a bearish movement signal again for the price.</p><p><br /></p><p>Further decline is still expected to reach the target of 1.26000 which was the price support level during last week's trading.</p>