Pound investors will focus on a speech by England’s central bank Governor Andrew Bailey on financial and macroeconomic stability in an online event today.
Investors awaited a hint by Bailey for monetary policy after a reading of the rising UK inflation rate published last week failed to drive the Pound’s rise in the market.
On the price chart of the GBP/USD pair, the price has displayed a spike last week to the resistance level of 1.33000, but declined again and hovered in the zone of 1.32000 until the end of the week.
Failing to maintain movement above the 1.32000 level, bearish signals were evaluated by investors when the price slipped lower below the 1.3200-1.31700 zone and the Moving Average 50 (MA50) resistance level on the 1-hour time frame, at the beginning of the opening earlier this week.
The decline in prices earlier in the week was sparked by concerns over reports of the implementation of movement restriction measures in Shanghai following a re-emergence of the coronavirus outbreak, strengthening the safe-haven currency of the US dollar.
The price is expected to decline towards the initial support level at 1.31000 to display a movement on a clearer bearish trend.
Next, the price that continues to decline is seen to be heading to the support zone of 1.3000 which was the focus of trading a few weeks ago.
However, it is not impossible for investors to expect the Pound to strengthen following the previous interest rate hike by the Bank of England (BOE).
For bullish expectations, re -passing the 1.32000 zone will push the price to reach the 1.33000 high tested last week.
Higher rises past the resistance are targeted to head to the latest highs around 1.34000 to record a 4 -week high.
