In the focus of investors yesterday was the meeting of the central bank of England which has had a mixed effect on the pound currency.
The Bank of England (BOE) set interest rates to rise by 25 basis points to 4.25%, indicating a slower rate hike.
It became a challenge for the central bank when the UK inflation data published last Wednesday recorded a high reading of 10.4%.
This is seen to make it difficult for the central bank which previously stated to stop policy tightening.
The BOE said they have raised interest rates significantly and believe that inflation will fall more significantly in the second quarter of this year.
The pound traded gloomy throughout Thursday and did not react aggressively to the outcome of the meeting.
On the price chart of the GBP/USD pair, the price rose slightly yesterday hovering at the high level of 1.23400 which is the latest 7-week high level driven by the impact of the market reaction to the FOMC meeting.
However, the price failed to stay above the 1.23000 level with several drops to around 1.22700.
Resuming trading in the Asian session this morning (Friday), the price is still slow around that and hovering at the Moving Average 50 (MA50) support level on the movement on the 1-hour time frame of the GBP/USD chart to give further clues.
If the price drops lower, the price is seen to go to the 1.22000 level to retest the RBS (resistance become support) zone.
Continuing the decline after the trend change, the price will return to the concentration levels of the previous week such as at 1.21000 and 1.20000.
However, if the price manages to rise and continue the previous bullish trend again, the price increase will surpass the height reached yesterday.
Next, the price will go to the target of the latest height at around 1.24000.
