The Pound continues to suffer after there was a case of death related to the Omicron variant in the UK which completely continued to weigh on market sentiment and to the value of the Pound.
The result is likely to have a major impact on the Pound as well as dampen the prospect of a Bank of England (BOE) interest rate hike ahead of a meeting to be held this week.
Before awaiting the outcome of the FOMC meeting, investors are expected to evaluate first to the U.S. producer price index (PPI) data report in tonight’s New York session.
It seems that the price movement on the chart of the GBP/USD pair is not able to climb further after the price re -exhibited a decline at the beginning of the week to hit the support zone of 1.32000 with a daily decline of around 70 pips yesterday.
Not only that, the price is also seen to have re -tested the resistance trendline after the uptrend which is to be translated as failing to be maintained with the price continuing to receive pressure.
This situation can of course also be said as the price is giving an early indication of a change in the bullish trend following the price has traded below the resistance level of the Moving Average 50 (MA50).
This is very likely to push investors to see the price movement able to reach back to the lowest level since December 2020 around 1.31600.
More aggressive pressure is expected to affect the price of tracking the support zone of 1.31000 and indirectly affect the price to create new lows again.
However, if the price movement continues the uptrend, the SBR (support become resistance) zone of 1.33000 will remain the main focus to return.
An increase in displaying a clearer signal to the bullish trend will support the price reaching the next SBR zone observed at 1.34000.
