The fall was unstoppable, the price movement on the GBP/USD chart saw the price plunge to its latest low since September 2020.
The pound continued to fail to show any improvement and even came under pressure by the further strengthening of the US dollar with hawkish comments by Federal Reserve (Fed) Chairman Jerome Powell for an aggressive interest rate hike at next week’s meeting.
In addition, risky market sentiment driven by concerns that sanctions measures in China also injected a strengthening US dollar into the market as a safe-haven currency.
After a price plunge of up to 200 pips last Friday, the price continued its decline on the GBP/USD chart yesterday with a daily decline of around 140 pips recorded.
The price has reached the latest 2 -year low to the level of 1.27000 where the zone is the price support zone in September 2020 trading.
After touching the support zone in the New York session yesterday, the price leveled slowly and slightly increased continuing in the Asian session trading this morning.
The price is still seen to be in a bearish trend moving below the Moving Average 50 (MA50) barrier level on the 1 hour time frame.
Further declines in prices are expected beyond the 1.27000 support if the market situation remains unchanged in favor of the US dollar.
The target for a continued decline of the price is likely at 1.26000 or even lower towards the level around 1.25000.
On the other hand, if the support level of 1.27000 manages to repeat the surge in September 2020, it is likely that the price will rise again towards the initial resistance level at 1.29000.
The next continued rise will test the SBR (support become resistance) zone of 1.3000 which was the price support zone for trading a few weeks ago.
