On the price chart of the GBP/USD pair, the price seems to be highlighting the horror with a plunge to the bottom to test the support zone of 1.35000.
After recording an aggressive decline breaking the level of 1.36000, the price movement is seen again moving slowly and hovering in the support zone of 1.35000 in anticipation of the opening of the European session.
If examined, the price has recorded a daily decline of around 200 pips starting at the beginning of the European session continuing up to yesterday’s New York session.
In addition to the strengthening of the US dollar, the significant decline was also driven by the depreciation of the Pound in a market affected by the surge in gas prices in the UK.
Bank of England (BOE) Governor Andrew Bailey's speech will also be the focus of investors at tonight's New York session for further indication of the Pound's movement.
The price on the GBP/USD chart has moved below the Moving Average 50 (MA50) barrier level on the 1 -hour timeframe to give an indication of a bearish trend change.
The plunge into the 1.35000 support zone also broke the latest record low since January after being supported for so long to return to the 1.36000 level.
A lower decline will drive the price on the GBP/USD chart down to the level of around 1.34000 which is the resistance zone tested in August 2020 before the price managed to break the zone at the end of 2020.
If the price spike re -emerges, the SBR (support become resistance) zone of 1.36000 will be the zone that investors will watch to signal the next movement.
The price increase that managed to pass the SBR zone of 1.36000 and continue the rise higher is expected to re -test the SBR zone of 1.37000 which was the focus previously.
