The price drop on the GBP / USD chart was expected to be widely expected based on a clear fundamental and technical factor after the decision of the FOMC meeting early Thursday morning.
US dollar continues to strengthen its trading value to show the best weekly performance within 9 months to end its previous series of drops.
Meanwhile, Pound Sterling continues to move weak and is expected to continue until a few weeks further following the extension of movement restrictions in the UK which affected the economic opening plan by Prime Minister Boris Johnson.
The positive UK economic data also failed to support the rise in the pound. The European session today will focus on UK retail sales data for May, which is expected to record weak readings.
Examining the price movement on the GBP / USD chart, the price has plunged to the 1.40000 support level after the FOMC meeting before slowly around the level.
The price drop remained continued in European sessions and New York yesterday until it reached the latest 1.39000 lowest level.
The price movement below the Moving Average 50 (MA50) barrier level on a 1-hour time frame on the GBP / USD chart is a signal for the price continues to decline.
After reaching the 1.39000 level, the price returned slowly and horizontally at the Asian session Friday morning.
But the price drop is expected to continue to continue to go to the latest target level at the Support Zone 1.38300-1.38000.
For a price increase situation, the 1.40000 level will be the resistance to be tested before continuing the reduction.
The increase that surpassed the level would make investors be cautious for the change in revaluation trends.
