The Pound experienced a turbulent trading session on Thursday as several key factors were influencing the market.
Positive developments in trade talks between the United States (US) and Britain have eased concerns about the pressure on import tariffs.
However, the Pound failed to perform well after the Bank of England (BOE) announced at its latest meeting yesterday that it would cut interest rates by 25 basis points to 4.25%.
Examining the price movement on the GBP/USD currency pair chart, the surge seen in the European session yesterday failed to continue before changing direction in the following session.
The price increase seen around 1.33400 failed to break through the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart, which maintained a bearish signal.
The price plunged following the BOE meeting decision to break through the 1.33000 level in the New York session yesterday.
The decline continued in the Asian session this morning (Friday) to around 1.32100 before rebounding slowly to hover around 1.32400 at the beginning of the European session.
Prices are expected to continue their decline towards the 1.32000 zone to record a new 3-week low.
If the important zone is broken, there is a greater tendency for prices to continue lower towards the 1.31000 target and the next focus level.
However, be careful if the price rebound seen will re-test the 1.33000 zone that has been the focus since last week.
With the rise above that zone and the MA50 barrier, the 1.34000 resistance zone will once again be the target to aim for.
