The price movement on the GBP/USD chart remained intact in maintaining the bearish momentum around 400 pips throughout the January 2022 trade to record a 5 -week low at the 1.33600 level.
That is, the zone is also a resistance that is the main focus of investors in December 2021 trading before it was successfully overcome for the price to record a 3 -month high.
The decline also forms the latest Lower Low (LL) in showing a bearish trend and this situation may signal that a lower decline will be created again.
The hawkish Federal Reserve (Fed) statement during the previous FOMC meeting and the positive US Gross Domestic Product (GDP) report continued to strengthen the USD.
But the main factor may be awaited first at the Bank of England (BOE) meeting which will take place this Thursday to see the next steps that the BOE wants to make.
Being a key factor is that the follow -up to the UK inflation rate which hit a record 30 -year high is likely to push the BOE to implement an interest rate hike once again.
Therefore, the next expectation is likely to see price movement on the GBP/USD chart is expected to continue to decline to re -test the lower support zone at 1.33000.
Indirectly more drastic pressure is likely to push the price to head to the support zone at 1.32000 which is also the lowest level recorded during the previous 2021 trade.
However, the SBR (support become resistance) zone of 1.35000 is also a concern if the momentum from the BOE is clearer to make a move to increase the interest method in the next meeting.
These factors will of course support the movement of the price to reach the next SBR zone at 1.36000 which in turn will influence the price to give a picture of the trend change.
