The FOMC meeting early this morning answered questions about the decision of the Federal Reserve (Fed) to continue further tightening monetary policy, which saw the interest rate increased by 75 basis points to 3.25%, the highest in 14 years.
The US dollar received a positive effect after the results of the meeting which was seen to strengthen the king of the currency and put pressure on other major currencies in the market.
The pound is also resisting the dominance of the US dollar at the moment, but investors are warned to be careful as the central bank of England is also about to announce their monetary policy decision shortly.
At 7pm local time, the Bank of England (BOE) meeting will be in focus with an expected interest rate increase of 50 basis points to be implemented.
If it happens, the Pound has the potential to rise in the New York session and reduce the pressure by the previous US dollar.
On the price chart of the GBP/USD currency pair, the price is seen continuing its decline to the latest 37-year low.
On Wednesday yesterday, the price that remained moving in a bearish trend with the Moving Average 50 (MA50) barrier on the 1-hour time frame as a marker for the price, has started to show a slow decline pattern towards the support level around 1.13000.
And after the FOMC meeting early this morning, the strengthening of the US dollar has pushed the price lower to break through the 1.13000 level to record the latest lowest level since 1985.
As of the Asian session this Thursday morning, the price is hovering around 1.12200 with the expectation that the price will continue to decline further while investors wait for the results of the BOE meeting.
If the price continues to decline past the 1.12000 zone, the latest 20-year record low for the price will be recorded again, possibly reaching up to around 1.11000.
However, beware if the price starts to surge again, the resistance at 1.13000 will be the initial focus to be tested.
Breaking through that resistance and the MA50 barrier will signal an early price trend change before the 1.14500 zone comes back into focus.
