The price movement on the GBP/USD chart remained intact in maintaining the bearish momentum after the price dropped more than 100 pips at the close of trading last week despite being a bit sad at first.
That is, the decline is indirectly seen to continue the tendency to plummet and the price seems to have once again reached the support zone and the lowest level of 2021 at 1.32000.
But the price movement seems to have returned to a slow move at the beginning of the Asian session today (Monday) and continued to trade below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
The prospect of strengthening the Pound continues to be affected which is probably still facing deck risk pressure as the Brexit issue remains deadlocked in reaching the final word during the trial.
Because of this, it has led to risky market sentiment and made investors look for safe-haven assets such as the USD as the threat of the Omicron virus continues to spread.
The USD, on the other hand, continued to take advantage of the opportunity to show a strengthening despite the release of US NFP data with readings that were very deviant from market expectations.
Maintaining the lower bearish momentum will see the price able to break the lows around 1.31940 before it is expected to track to the next support zone 1.31000.
That is, the decline will thus create the latest low level for this year and since December 2020 and remain a plunge for 3 consecutive weeks.
Yet it is not impossible if the Pound can give back the strengthening influence that could possibly push the price movement back uphill.
The climb is likely to reach the SBR (support become resistance) zone of 1.33000 first before cutting the resistance trendline for the initial signal of a bullish trend.
