The price chart of the GBP/USD currency pair is still hovering in the horizontal zone since the opening of the market earlier this week with both the Pound and the US dollar expected to be volatile awaiting the results of their respective central bank meetings.
Both central banks Bank of England (BOE) and Federal Reserve (Fed) are expected to continue aggressive interest rate hikes of 50 and 75 basis points respectively at the latest meeting.
Thus, there is potential for the Pound and the US dollar to strengthen at the end of this week's trade with policy tightening measures by the central bank to curb rising inflation.
On Tuesday yesterday, the price movement on the GBP/USD chart remained flat with gains blocked by the 1.14500 resistance level.
A decline was seen to the 1.13600 level at the end of the New York session, where the zone remained the lowest price hit since 1985.
It is not impossible that a new record low will be recorded again if the price continues to decline today after the price moves back below the Moving Average 50 (MA50) obstacle level on the 1-hour time frame on the GBP/USD chart.
If the price decline continues, passing the current support at 1.13600 will then be seen to aim for around 1.13000 or reach 1.12000 while recording the latest low for the 37-year trading period.
However, be alert if the price instead starts to rise and then crosses the MA50 barrier and the 1.14500 resistance level which is in the SBR (support become resistance) zone.
After the bullish movement signal, the price is expected to continue rising higher with the target to reach the level of 1.16000.
Next, the continued increase beyond 1.16500 will challenge the height reached last week before the resistance zone at 1.18000 will be the focus to be tested.
