Thats it!
The price movement on the chart of the GBP/USD currency pair is in line with the expectation to maintain the decline after exhibiting a descending triangle pattern which refers to a downtrend pattern.
The aspect can be strengthened in line with the bearish action of more than 100 pips on Wednesday's trade which has also created the latest 12 -month low around 1.31600.
However, the price movement today (Thursday) is seen to be slow but the expectation to continue to decline is still relevant after the price remained moving below the Moving Average 50 (MA50) barrier level.
Just wanting to highlight dominance, the Pound currency is back receiving one problem after another and most recently Prime Minister Boris Johnson has begun announcing the re -implementation of the lockdown measure in the UK.
Indirectly it has put a strain on the value of the Pound which was previously also haunted by declining confidence in the Bank of England (BOE) to raise interest rates earlier.
On that occasion, the USD continued to strengthen at a time when it still has the backbone of the Federal Reserve (Fed) which is increasingly clear in stating the tapering measures it wants to implement.
That is, the lowest level of 1.31600 is likely to be the first direction to be tracked first while the new support zone of 1.31000 is likely to be the next target.
In addition, the support zone was also used as the focus of investors in October 2020 before the zone was successfully penetrated in early November 2020 to soar aggressively.
Assuming the price is unable to continue its bearish action, trendline resistance is expected to be assessed by investors for price increases made before targeting expectations towards the SBR 1.33000 zone.
Heading to the SBR zone will indirectly make investors see early signals for the price to climb to the SBR zone 1.34000 in showing indications of a more significant bullish trend change.
