The attempt to increase the price at the beginning of the week on the GBP/USD currency pair chart appears to have failed to continue, instead the price is falling further.
A significant decline in prices was shown in the New York session yesterday as risk-on market sentiment continues to be driven by the tension of the Iran-Israel war conflict.
As of this morning (Wednesday), bomb attacks are still being reported in Iran by Israel after both countries continued to retaliate for several days starting last Friday.
American intervention in this war situation is also seen as potentially triggering greater risks.
The US dollar is back on track to strengthen in a risk-off market environment, while investors are wary of Pound trading ahead of the Bank of England (BOE) policy meeting on Thursday.
Early Thursday morning, the FOMC meeting will be given first attention which will affect the movement of the US dollar.
The increase in prices at the beginning of the week failed to pass the 1.36000 resistance zone before a drastic plunge occurred on Tuesday yesterday.
If we look at the Asian session yesterday, the price leveled off around 1.35700 while testing the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the GBP/USD chart, making investors ready for a bearish signal.
A price drop of around 150 pips was displayed until it reached around 1.34200 at the close of the New York session.
The price recovered slowly in the Asian session this morning but still remained below the 1.35000 zone after a plunge that broke through that level yesterday.
The expectation for the downtrend to continue is expected to surpass the 1.34000 zone.
However, if the price manages to rise back above 1.35000 and the MA50 barrier, the price situation is likely to have a different story.
The 1.36000 resistance zone could be retested and the potential for the price to record a rise to the latest 3-year high.
