The price movement on the GBP/USD chart continued to surprise investors by making a decline of over 70 pips to once again hit the latest low around 1.33170 in Wednesday’s trading session.
However, the price decline is completely like making LL (lower low) to continue the bearish trend since the end of October and has denied the previous trend change signals.
A clear bearish signal was also seen after the price movement remained moving below the Moving Average 50 (MA50) barrier level with a fall above 500 pips from the 1.38300 high.
The situation of the Bank of England (BOE) which is seen as not in a hurry in tightening policy has been the reason why the strengthening of the Pound can not continue at this time.
The point is also that the post-Brexit that is still unfinished also has adverse implications for the value of the Pound in addition to the increase in the Covid-19 outbreak that occurred in the United Kingdom.
In contrast to the USD, the king of the currency continued to spread its dominance to remain strong after gaining support from hawkish statements in the minutes of the FOMC meeting published earlier this morning.
If so, a lower price decline will see the price break the 1.33000 support zone for an early shadow of the price being able to remain bearish throughout November.
Pressure from the strengthening of the USD is likely to push the price movement to reach the next support zone at 1.32000 and thus set a new record low for the year.
However, investors will also turn their attention to the SBR zone (support become resistance) at 1.34000 as well as the MA50 resistance level if the price increase occurs again to assess the signal of a more significant bullish trend change.
This also illustrates that the price is likely to be able to once again make an attempt in testing the SBR zone of 1.35000 which last week was a resistance to price increases and still failed to break.
