It was a bit of a surprise for investors to see a significant decline in prices on the GBP/USD chart at the close of last week's trading.
Like other major currencies, the Pound was also affected by the re -strengthening of the US dollar in the market after indications for an interest rate hike of up to 50 basis points for the next month by Federal Reserve (Fed) Chairman Jerome Powell.
In addition, the Pound also weakened following the disappointing published UK economic data, especially on the UK retail sales rate reading which recorded a declining figure.
However, investors did not expect a drop of up to 200 pips to occur in last Friday's trading until it hit the latest low since September 2020.
On Friday, there were already signs for a bearish movement after the price moved below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart.
After the decline passed the support zone at 1.3000, the significant fall of the price up to 200 pips has reached up to 1.28230 at the close of the week.
Continuing with the opening of the market earlier this week, the price is seen to continue its decline in the Asian session to the level of around 1.28000.
The decline is expected to continue and investors will monitor the extent of the decline to find the latest level of price support.
The bearish target is likely to reach up to the level of around 1.27000.
However, in the event of a rebound, the initial resistance level will be at 1.29000 before the continued rise will head back to the previous 1.3000 focus zone.
