After the drastic movement of the Pound at the beginning of the week last Monday, the price movement was seen to calm down a bit on Tuesday yesterday while the market was still digesting the actions of the UK government which were seen to be in conflict with the implementation of the central bank's policy.
After the Bank of England (BOE) increased interest rates with the aim of lowering inflation, the UK government announced a mega tax cut plan to offset the risk of economic recession.
Like the Pound, the US dollar currency also calmed down a bit on Tuesday yesterday with the United States (US) consumer confidence data published slightly supporting the US dollar's more gloomy movements in previous sessions.
It can be observed the price movement on the chart of the GBP/USD currency pair yesterday with a price movement range of around 170 pips only compared to 600 pips on Monday.
The price is still considered to be moving in a bearish trend that is hindered by the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the price chart.
The upside hovered around 1.08300 and dropped to around 1.06700 before continued trading in the Asian session this morning (Wednesday) was still slow and showed a slight decline lower.
Further price declines are expected to continue as prices are likely to retest the all-time low zone at 1.04000.
And it is not impossible for the latest record low to be created again if the Pound continues to move dismal allowing the US dollar to dominate.
However, if the upside starts to break through the MA50 barrier and rise above the highs earlier this week, the target for the price surge is towards around 1.11000.
Continuing the bullish movement will push the price back to the previous concentration levels around 1.12000 and 1.13000.
