The price movement on the chart of the GBP/USD pair, which initially seemed to continue to decline in the European session yesterday, rebounded again after hitting the daily low of 1.31700.
That is, the price increase is also seen to continue in today's trading (Friday) to once again test the trendline resistance and remain hovering at the resistance level of the Moving Average 50 (MA50).
However, the price movement is still not able to affect the shape of the descending triangle observed in the 1 hour time frame to bring meaning to the downtrend signal.
The prospect of declining investor confidence in the Bank of England (BOE) to make interest rate hikes more immediate seems to be a bit shaken off the deck of the Omicron outbreak crisis that has hit the UK.
The concern also caused the Pound to be somewhat burdened which was also haunted by the lockdown measure announced by UK Prime Minister Boris Johnson in the country.
The main focus is the release of US inflation data tonight ahead of the report on the results of the FOMC and BOE meetings to be held next week.
If the descending triangle remains valid, it is likely that investors will see the price retry the lows around 1.31600 before declining lower.
A more drastic decline will see the price move back to the new support zone at 1.31000 which will completely maintain the signal to a clear downtrend pattern.
On the other hand, trendline resistance will be the main focus of investors to observe that if the price breaks the trendline, the SBR zone (support become resistance) 1.33000 may be tested.
That aspect will also totally be supportive to investors to see the price display early signals to a trend change that will likely be able to climb to the SBR zone of 1.34000.
