Come on! Up to 130 Pips GBP/USD Plunge Like That!

<p>&nbsp;A daily price jump of around 130 pips was displayed on the chart of the GBP/USD currency pair during yesterday's Tuesday trading.</p><p><br /></p><p>This has wiped out the gains made earlier in the week when the price surge was driven by the weakening US dollar.</p><p><br /></p><p>However, the US dollar 'awakened' again yesterday with the support of the strong United States (US) manufacturing and services PMI data published for October.</p><p><br /></p><p>Meanwhile, the same data for the UK was published in the previous European session with less encouraging readings.</p><p><br /></p><p>If observed on the GBP/USD chart yesterday, the price initially made an increase to the height of 1.22850 with the target being to reach 1.23000.</p><p><br /></p><p>Later, the price plunged 130 pips, re-entering the 1.22000 level and reaching around 1.21600 in the New York session.</p><p><br /></p><p>The price flattened slowly around that at the end of the session until it continued at the opening of the Asian session this morning (Wednesday).</p><p><br /></p><p><br /></p><p>If the decline continues lower, the target is to retest the previous week's support level at 1.21000.</p><p><br /></p><p>If that level is also broken, a further price drop is expected to lead to the 1.20500 zone which is the focus of early October trading.</p><p><br /></p><p>However, if the price surge occurs again and breaks through the 1.22000 level, it is likely that the rising pattern at the beginning of the week will resume.</p><p><br /></p><p>The price increase will again lead to the 1.23000 level for the price to test the resistance zone.</p>