Price movements on the chart of the GBP/USD currency pair remained flat at the start of trading earlier this week with the US dollar still searching for a clear direction in the market.
Meanwhile, the Pound remains gloomy driven by the movement of the US dollar while investors await the results of the central bank meeting for both currencies.
The Federal Reserve (Fed) is expected to raise interest rates by 75 basis points for the third consecutive meeting to 3.25%, early this Thursday morning.
And on the same day, in the European session, the focus will be on the results of the central bank of England (BOE) meeting with an expected interest rate increase of 50 basis points to 2.25%.
Looking at the price action on the GBP/USD chart on Monday yesterday, the price decline started in the Asian session, but the price bounced back after hitting the 1.13500 zone that the price hit last week.
The 1.13500 zone that the price hit last Friday was the lowest price record since 1985 after the initial decline passed the 1.14500 zone.
In the New York session yesterday, the price was seen to bounce back until it hovered again in the 1.14500 zone, which became the latest resistance zone for prices to continue in the Asian trading session this Tuesday morning.
The initial increase in price above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart gives an early indication of the beginning of a bearish price trend.
If the price manages to continue the rise more clearly past the resistance of 1.14500, it is likely that the price will aim towards the resistance in the 1.16000-1.16500 zone.
Passing the zone will then reach back to the high level recorded last week before the resistance zone at 1.18000 will be the next focus.
However, if the price remains unable to pass the 1.14500 level, the price decline can happen again, but will the 1.13500 zone continue to succeed in bouncing the price?
If the price continues to experience a lower contraction, the target is to go up to around 1.13000 or 1.12000 while recording the latest 37-year low.
