Investors were wary of the Pound’s movement this week with a focus on the outcome of England’s central bank monetary policy meeting.
The decision of the Bank of England (BOE) in setting its policy is awaited by investors whether the policy tightening will be announced or otherwise.
Central bank-focused economic data published last week is seen as failing to support the Pound’s strengthening heading into this week’s meeting despite data readings rising positively.
The price movement on the chart of the GBP/USD currency pair at the beginning of the week has seen the price decline lower past the 1.37000 zone which later became the latest resistance zone for the price.
Resuming trading on Tuesday yesterday also still saw the price fail to pass the 1.37000 resistance zone after the rise was exhibited.
The Moving Average 50 (MA50) barrier level is also still restraining the upside signaling the price movement is still in a bearish trend.
If the bearish pattern is maintained, the price will decline lower towards the support zone at 1.36000.
The zone will determine the direction of further price movements after the decline in July and August trading was successfully curbed before seeing a rebound in prices from the zone.
On the other hand if the price manages to jump past the resistance of 1.37000 and also passes the barrier of Moving Average 50 (MA50) on the 1 -hour time frame, investors will start to be alert for price trend changes.
A successful continued higher price increase will retest the 1.38000 level in the SBR (support become resistance) zone which was the focus last week.
