The UK services PMI data released at the European session yesterday clearly failed to support the Pound Sterling trade to strengthen against the US dollar.
Prices on the GBP / USD currency pair chart on Wednesday remained showing a bearish pattern even at a slower pace than the previous day's decline.
In addition to investors looking forward to the US NFP (US) employment data report on Friday, the market focus first focused on the monetary policy meeting of the central bank of England today.
The Bank of England (BOE) is expected to continue to keep interest rates at a low of 0.10%, but a follow-up statement by Governor Andrew Bailey will be the focus for indicators of previously controversial negative interest rates.
The price movement on the GBP / USD chart is also seen to remain below the Moving Average 50 (MA50) barrier level in the 1 hour time frame where the barrier was tested several times yesterday but the price still failed to pass.
The price decline shown yesterday also did not reach the lowest level the previous day but still reached around the RBS zone (resistance become support).
The price decline is seen to continue in the Asian session this morning (Thursday) towards the RBS 1.36000 zone.
Successful momentum of the price maintain and pass 1.36000 will lead to lower price decline with the expectation of the RBS zone of 1.35300 or the 1.35000 concentration level.
On the other hand if the price rebounds from the RBS zone of 1.36000, the MA50 dynamic barrier will be tested before the price penetrates to a higher level will signal the beginning of a bullish trend change.
The next price increase will return to test the previous resistance zone of 1.37000 with the level of 1.37500 still failing to break after testing in previous weeks.
