Prices on the GBP/USD chart continued lower in Thursday's trading as the strengthening of the US dollar added to the pressure on the Pound, which has been weakening since last week.
The US inflation data report which is still hovering at a 40 -year high is already expected to reinject the momentum of the strengthening US dollar in the market.
As for the Pound, investors rated the readings of some UK economic data published in the European session yesterday particularly the economic growth readings for the first quarter which overall displayed a dismal reading.
After the price dropped above the 1.22800 level on Wednesday, yesterday's trading moved lower around the 1.21700 level although the price decline was not very significant, but remained at the latest 2 -year low.
Still signaling a bearish trend, the price on the GBP/USD chart is moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
Analysts see the tendency is for the price to continue to decline even lower over the weekend with the next target level being at 1.2100 which is the price support zone in May 2020 trading last.
However, the probability of a price increase over the weekend makes investors wary of the risk of a change in market direction.
If the price rebounds above the level of 1.22800, the continued rise will test the SBR zone (support become resistance) at 1.2400 which is an important resistance of the price this week.
A higher rise for a clearer bullish trend change signal will push expectations for the price to rise towards the resistance zone at 1.2600.
