Already meeting analysts ’expectations, the Pound Sterling continued to depreciate following the announcement of an extension of movement restrictions in the UK until July 19 due to concerns of a contagion of the Covid-19 Delta variant that undermined economic opening plans.
As observed the price movement on the chart of the GBP/USD currency pair yesterday, the price has made a lower decline past last week’s support level.
While the movement of the US dollar is seen to remain unstable as investors await the outcome of the FOMC meeting, the weakness of the Pound has been a factor pushing prices lower.
The bearish trend of the price is more clearly seen when the price continues to move below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the GBP/USD chart.
After hitting yesterday's daily low around 1.40340, a lower decline is expected towards the support level of 1.4000 which is in the RBS zone (resistance becomes support).
This level has also managed to support the price increase during the decline in trading last May.
However, if the zone is successfully broken, the price that continues to decline will lead to the next focus level around 1.39200.
If the price manages to rebound above the 1.41000 level and passes the MA50 barrier, analysts expect the bulls to head back to the 1.42000 resistance zone which was the previous focus.
Passing the zone will see the price record its latest high to the target level of 1.43000.
