The good news of the post -Brexit does not seem to last long after being influenced by declining investor confidence to see the Bank of England (BOE) raise interest rates sooner.
In this regard, it has had an impact on the USD to continue to strengthen after still having a major backbone following the Federal Reserve’s (Fed) hawkish statement earlier.
The Fed’s actions will continue to be a concern ahead of the release of U.S. inflation data on Friday that could influence the outcome of next week’s FOMC meeting.
Monitoring the price movement on the chart of the GBP/USD pair is seen as unable to continue the climb after the price made a rejection in the resistance trendline to plunge again.
That is, the price seems to have already experienced a plunge of more than 70 pips to return to hit the support zone of 1.32000 which indirectly it continues to maintain a bearish trend since October 2021.
Yet the support zone once again remained supportive of the price spike at the end of the session until resuming trading today (Wednesday) in anticipation of making an attempt at re -testing the resistance trendline.
The resistance trendline continues to remain the focus to see early signals of a trend change that may drive the price to reach the SBR (support become resistance) zone of 1.33000.
If the price movement manages to increase to the SBR zone, investors are expected to make an assessment for the price to test the SBR zone 1.34000 to see a clearer bullish trend.
But in the end the price on the GBP/USD chart is seen as if it is forming a descending triangle pattern which will likely tend to push the price to maintain the bearish trend.
As a result, investors will likely see the price move to the support zone of 1.32000 and will likely be able to fall even more severely in hitting the latest lows.
