In contrast to the US dollar which is still firm in the market, although the sentiment of the Russia-Ukraine crisis has slightly subsided, the Pound continues to experience pressure with the depreciation of the trade closing value at the end of last week.
The crisis of the protracted Russo-Ukraine war for the past few weeks has also given a bad impression on the British economy after a warning was also issued by the Minister of Finance, Rishi Sunak.
However, the upside to the outlook for the Pound has increased again this week with the decision by the central bank of England (BOE) to show rate hikes are in effect.
Likewise, the focus on the FOMC's decision with the expectation for the Federal Reserve (Fed) to increase the benefit rate on this meeting.
The current price movement on the chart of the GBP/USD currency pair still shows the downward pattern that was presented at the opening of trade earlier this week, continuing last week's decline.
In the last week, the price hikes stalled at the 1.32000 resistance zone before prices receded beyond the 1.31000 support level to record a fresh 16 month low around 1.30300.
The price which has also moved below the 50 Moving Average (MA50) barrier on the 1 hour timeframe on the GBP/USD chart is still signaling a bearish trend.
The price decline that continues this week will break the latest support at 1.3000 with the next target for the decline at 1.29000.
On the other hand, if the price hike holds, the initial hurdle to be tested is seen at 1.31000 before the price reverted back to the 1.32000 resistance zone last week.
For higher gains, SBR zones (support become resistance) 1.33000 and 1.34000 will be the next pedestal for price movements in the bullish trend.
