Looking at the GBP/USD price movement chart, the price still seems to remain constrained by the resistance trendline by continuing to make lower declines.
The pair experienced a fall of more than 150 pips starting at the beginning of the European session (Wednesday) until the end of the session to record the latest lows of 2021 and since December 2020.
The price movement is seen to have made the latest LL (lower low) to maintain the bearish trend before moving slowly in the Asian session today (Thursday) towards the opening of the European session later.
Having been plagued by market volatility in the past, the USD is seen to be strong again to record a strengthening following the issue of optimism on the United States (US) inflation rate.
The 10 -year US treasury yield which showed a rebound as well as risky market sentiment as a result of the Evergrande issue were also factors supporting the strengthening of the USD.
Meanwhile, as it is still tied to dovish statements by the Bank of England (BOE) and pressure on post -Brexit has resulted in the Pound moving back weak.
If the price movement is dragged down to continue the bearish record, the 1.34000 support zone is likely to be torn, which is currently being tested for the price to plunge to more severe levels.
A significant jump will see the price hit the next support zone at 1.33000 to strengthen the bearish trend and next will once again record the latest lows.
But on the other hand, if the price movement on the GBP/USD chart is able to get support to rocket again, the SBR zone (support become resistance) 1.36000 is expected to be tested again.
A more aggressive surge will see the price break the resistance trendline to fly towards the SBR 1.37000 zone and will give an early signal of a trend change.
