The price movement on the GBP/USD currency pair chart has seen a surge in the last week after a hawkish decision by the central bank of England (BOE) at a policy meeting by deciding to raise interest rates to 0.25%.
Investors had initially placed confidence in the situation after published inflation data had recorded the highest reading for a period of 10 years.
The price spike had actually erupted earlier after the hawkish outcome of the FOMC meeting, yet saw the movement of the US dollar depreciate.
The price has reached a weekly high of 1.33700 with a jump of 200 pips from the support zone of 1.31700-1.32000.
However, the momentum of the surge failed to continue as the price made a comeback on Friday with a daily decline of around 100 pips.
The pound is likely to come under pressure by the re-strengthening of the US dollar which is back in the spotlight as a safe-haven currency following concerns over the growing Omicron threat.
The signal for the bearish trend of the price is seen again after the price moves back below the Moving Average 50 (MA50) barrier level on the 1 hour time frame.
The opening of the market in the Asian session this morning (Monday) saw a slow movement of the price around 1.32300 with the expectation of a decline to the support zone of 1.32000.
Entering the fourth week, the focus support zone is still expected to be tested after successfully curbing the previous fall in lower prices.
Yet investors can expect for a decline to penetrate the zone to occur for prices to hit the latest lows again for the year.
On the other hand if the zone becomes a ‘immune floor’ and supports a rebound, the nearest focus level seen at 1.33000 earlier will be reached.
The next continued rise will test the highs reached last week before heading to the highs at 1.34000.
