The price movement on the chart of the GBP/USD currency pair is seen failing to maintain the bullish pattern after the price plunged again in the New York session yesterday.
This is due to the main factor in focus that the published United States (US) inflation data rose to a 13 -year high has strengthened the US dollar against other major currencies.
Positive sentiment ahead of the opening of the UK economy is increasingly failing to support the Pound to curb the US dollar’s strengthening push yesterday.
The price on the GBP/USD chart plunged back to the level of 1.38000 after hovering in the resistance zone of 1.39000 for 2 days.
The price has also come back below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame signaling for the start of a bearish trend again.
Investors will expect a lower price drop below the 1.38000 level and retest last week's support level around 1.37400 before heading to the 1.37000 support zone.
A lower decline below the support zone will record the latest 5 -month lows.
If the price manages to show a rebound past the MA50 barrier, the resistance zone at 1.39000 will be tested again.
Only passing the barrier will give a clearer indication for a higher price increase on the GBP/USD chart.
A higher rise will push the price expectation to head to the SBR (support become resistance) zone of focus at 1.40000.
