InstaForex

September 23, 2021

GBP/USD Remains Bearish Pattern, BOE Meeting Becomes Focus

 The price chart of the GBP/USD pair is still continuing its movement in a bearish trend after the results of the FOMC meeting earlier this morning became the focus.


The rally was initially seen heading towards the 1.37000 resistance zone before the price made a decline back to the 1.36000 support zone following a hawkish -tone statement by the Federal Reserve (Fed) pushing for a strengthening US dollar.


Prices are still holding on to the support zone as investors are next to be wary of the England central bank's monetary policy meeting in the European session soon.


Investors also want to see whether the Bank of England (BOE) will follow in the Fed’s footsteps to implement policy tightening or will continue to maintain loose policy.


Ahead of the BOE meeting, UK economic data will be given priority for assessment for the manufacturing and services sectors on the figure readings for September.




With the price movement still below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame for the bearish trend signal, the price is likely to continue its lower decline past the 1.36000 support zone in weekend trading.



The continued decline will lead to the next support zone around 1.35000, recording the latest 8 -month low.


On the other hand if the price makes a rebound, the resistance of 1.37000 will be a barrier to a higher rise.


If the bullish momentum continues, the price will continue to rise towards the SBR zone (support become resistance) at 1.38000 which was the focus of the price before.


The price movement in the European session will soon be turbulent for the Pound. Investors will be better prepared to face any risk in the market.