The Pound Sterling currency was seen plunging yesterday following the outcome of the central bank of England's policy meeting which investors are looking forward to.
In line with forecasts, the Bank of England (BOE) has raised interest rates by 25 basis points to 4.50%, marking the 12th consecutive rate hike.
As a result of efforts to deal with the inflation rate that still remains at 2 digits, the BOE has reached the highest level of lending since 2008.
Despite concerns about inflation which is still above the 10% level, Governor Andrew Bailey in a follow-up statement stated the projection that the central bank will not raise interest rates again after this, but it also depends on the data published next.
This has pushed the Pound currency down in the New York session yesterday.
On the chart of the GBP/USD currency pair, the price that had initially fallen below the 1.26000 level saw a plunge to touch the concentration level at 1.25000.
After that, the price movement started to slow down and flatten on it until it resumed the opening in the Asian session this morning (Friday).
Movement below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart suggests that the bearish trend will continue.
If the price continues to decline below 1.25000 in the end of this week's sessions, the price can reach up to around 1.24000 which was also in focus before.
However, if the price manages to bounce back from 1.24000, the price increase is seen to return to the 1.25000 level to test the resistance.
After the increase continues, the bullish trend change signal will be assessed before the price reaches a higher level again with a target towards 1.27000.
