GBP/USD Does Not Continue the Surge, Drops Below $1.2700!

<p>&nbsp;The bullish pattern of yesterday's Thursday trading did not continue on the chart of the GBP/USD currency pair as it closed the August 2023 curtain.</p><p><br /></p><p>Driven by the US dollar, the king of currencies again showed a recovery from the significant decline experienced on Wednesday when it was affected by the economic data of the United States (US) that had been published.</p><p><br /></p><p>Being an important indicator for the direction of the Federal Reserve's (Fed) monetary policy, the ADP employment data recorded a declining reading, giving a negative signal for the NFP report that will be published today.</p><p><br /></p><p>In addition, the second reading for US economic growth (GDP) for the second quarter of 2023 surprised the market when it dropped to 2.1% compared to the forecast to remain at 2.4% as read earlier last month.</p><p><br /></p><p><br /></p><p><br /></p><p>During the decline of the US dollar, the price on the GBP/USD chart has surged to a high of 1.27450 but the rise did not continue yesterday.</p><p><br /></p><p>The price showed a drop back to around 1.26600 in the New York session yesterday and the flat price around that continued in the Asian session trading this Friday morning.</p><p><br /></p><p>Giving a bearish signal, the price has moved below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the chart after plunging back below the 1.27000 level.</p><p><br /></p><p><br /></p><p>Therefore, investors will expect a drop in price to return to the 1.26000 concentration level.</p><p><br /></p><p>And if the price continues to fall, it is likely that the latest low will be recorded with the target being in the 1.25000 zone.</p><p><br /></p><p>However, any surprises can happen when the NFP data is published later where prices also have the potential to jump if the US dollar experiences a worse decline.</p><p><br /></p><p>Prices that surge past the 1.27000 zone will try to retrace the highs reached last Wednesday before continuing to climb higher.</p><p><br /></p><p>The next resistance for the price is at the 1.28000 zone where the zone has remained blocking the price increase for the last few weeks.</p>