The pound sterling eased lower against the US dollar heading into trading into the weekend with a strengthening by the US dollar taking advantage of a risky market situation.
Developments in the UK, policymakers of the central bank of England (BOE) have denied speculation that measures to reduce bond purchases (tapering) will be implemented in the near future.
BOE Governor Andrew Bailey stated the minimum conditions for an interest rate hike have been met however, it is not the right time to do so now.
Thus, interest rates that will not be raised and tapering measures will not be implemented, still give a dovish signal for the BOE to continue to maintain a loose policy while continuing to put pressure on the Pound.
On the chart of the GBP/USD currency pair, the price continued its decline since the beginning of the week hitting the latest low of this week around 1.37300 in the New York session yesterday.
But towards the end of the session, the price rose again hovering below the resistance zone of 1.38000 continuing in the Asian session trading this morning (Thursday).
The price movement that remains below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame still signals a bearish trend for the GBP/USD chart.
The lower decline is expected towards the price support zone around 1.37000 which was also tested in the trading at the end of last August.
The decline that continues beyond the zone is likely to reach a new low around the support of 1.36000.
For a bullish situation, the resistance of 1.38000 will be tested and if the price manages to pass the zone and also the MA50 barrier, will give an early signal for a change in the bullish trend of the price.
The continued rise will head back to the 1.39000 level reached at the end of last week for the price to test the resistance zone again.
