Like other major currencies, the Pound Sterling was no exception to depreciate against the US dollar after the FOMC meeting saw a significant strengthening of the US dollar last week.
The price movement on the chart of the GBP/USD currency pair plunged lower to the level of 1.38000 registering a weekly decline of around 340 pips.
In addition to the strengthening of the US dollar, pressure factors on the movement of the Pound also contributed to the decline in prices.
The extension of movement restrictions in the UK as well as the uncertainty of Brexit makes investors more wary of Pound trading.
This week, the focus will be on the policy meeting of the central bank of England (BOE) which is seen to continue to add more pressure on the Pound's trading.
After the price slipped below the 1.4000 level last Thursday, the price has closed trading testing the 1.38000 support zone on Friday recording the latest 6 -week low.
Continuing trading at the market opening this week, the price is seen still moving slowly at the support zone of 1.38000 which this zone has managed to support the price increase during the decline at the end of April.
However, with the strengthening momentum of the US dollar last week, can the zone return to support the price increase?
Analysts expect the bearish situation to continue this week towards the initial focus level around 1.37000 which has been the price support level since March trading.
If a price increase occurs, the level of 1.39200 is seen as a resistance zone that will be tested by the price before signaling the next price movement.
Prices that manage to break above the Moving Average 50 (MA50) barrier level in the 1 -hour time frame will also be an indication to investors for a reversal of the bullish trend.
