The price movement on the GBP/USD currency pair chart was among the most interesting in Thursday’s trading yesterday with a focused focus on the outcome of the England central bank’s policy meeting.
The Bank of England (BOE) met its forecast to raise interest rates by 25 basis points to 1.00%, maintaining the rate hike measures throughout the 2022 meeting.
However, after the meeting, the Pound experienced a significant depreciation.
This follows a warning by the BOE on the risk of a recession in Britain where the central bank has also lowered its economic growth projections for 2023 and 2024.
This has invited negative reactions on investors and prompted expectations of a prolonged depreciation of the Pound.
The price on the GBP/USD chart has displayed a daily decline of up to 300 pips yesterday with the price recording its latest low beyond the support level of 1.2400.
The decline has reached around 1.2320 which is the lowest price record since June 2020.
With the re -strengthening factor of the US dollar as well, the price is expected to continue the decline lower with expectations heading around 1.2200.
But be wary if the US dollar weakens after the reaction of a disappointing NFP employment report reading in the New York session that could push up prices again.
Prices rising again above the 1.2400 level are likely to test to the highs reached yesterday with the 1.2700 zone target to be tested.
