The price movement on the chart of the GBP/USD currency pair slowed again at the end of last week after displaying aggressive action on Thursday following the reaction to the war that erupted between Russia and Ukraine.
With the strengthening by the US dollar as a safe-haven and also the depreciation by the Pound, the price has plunged around 270 pips on Thursday hitting the latest 9-week low of around 1.32750.
But on Friday, the decline did not continue and the rebound price hovered around the 1.40000 level until the end of the week's trading.
Investors are still looking at a bearish trend signal on the GBP/USD chart as the price remains below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame, and even opened lower at the market opening earlier this week.
Starting trading around the 1.33200 level, the price showed an early rise in the Asian session on Monday morning while investors remained monitoring the development of the Russia-Ukraine crisis.
For the expected decline, the price, which is also below the 1.33000 zone, will again head to the 1.32000 level to test the support zone as well as record the latest 10 -week low.
The support zone has been tested several times in December 2021 trading but the price failed to break lower.
Meanwhile, if the market situation changes and the Pound starts to strengthen against the US dollar, the price will rise above the 1.34000 level and pass the MA50 barrier to give an indication of a bullish trend change.
The next price increase is seen to be towards the level of 1.35000 to test the SBR (support become resistance) zone after the zone was successfully broken at a significant price drop last week.
A successful rise will then go to the level of 1.357000 or higher will head back to the resistance zone at 1.36500 which was the focus in previous weeks.
