The price action on the chart of the GBP/USD currency pair appears to have failed to continue the bullish pattern at the close of last week's trade after a surge of almost 500 pips was exhibited in the previous days.
The upheaval in the UK is adding to investors' worries with the latest news over the weekend reporting the sacking of Finance Minister Kwasi Kwarteng who has only been in office for a month.
However, from the fundamental point of view of the central bank, the Governor of the Bank of England (BOE) Andrew Bailey continued to deliver a hawkish statement with a firm stance to continue policy tightening in an effort to lower the inflation rate in the UK.
The price on the GBP/USD chart is seen to show a decline of around 200 pips on Friday after a jump of over 300 pips the previous day.
The drop in prices is also seen to be supported by a more positive end-of-week trade closing by the US dollar after the United States (US) consumer confidence data recorded an increase.
Continuing the trade at the opening of the week in the Asian session this morning, the price hovered in the 1.12000 zone with the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart for investors to assess the current price trend.
If the price continues to decline this week below the 1.12000 zone, the 1.11000 level will be tested first for a bearish trend signal for the price.
The next further drop in price will lead to the RBS (resistance become support) zone at 1.09000 after the zone was also tested last week.
On the other hand if the price makes a rally past the 1.13000 level, the high reached last week is likely to be overcome before the resistance zone at 1.15000 will be the next target.
