Examining the price movement on the chart of the GBP/USD currency pair yesterday, the situation is the same as in last Wednesday's trading when the bullish attempt remained blocked at the level of 1.31000.
While the price movement is still above the 1.30500 level for 2 consecutive days, market analysts tend to see an impending price decline awaiting a more significant strengthening by the US dollar.
The minutes of the FOMC meeting published early yesterday morning boosted investor confidence in the tightening policy by the Federal Reserve (Fed) after the first interest rate hike was made at a recent meeting, since 2018.
But investors did not rule out expectations for the Pound to also strengthen, as the Bank of England (BOE) is also on the same track as the Fed.
Additional factors in the current market will play a role in determining the direction of movement for these two focus currencies.
The bearish trend signal is still seen on the GBP/USD chart with yesterday’s bullish attempt remaining blocked by the Moving Average 50 (MA50) barrier level on the 1 hour time frame.
With the 1.31000 level remaining a resistance for the current movement, a lower decline is expected towards the support zone at 1.3000.
If the support zone that supported the trade in March also managed to break the price, further decline could reach the level around 1.29000.
On the other hand if the price jumps above the MA50 level and passes the resistance of 1.31000, the SBR (support become resistance) zone at 1.31700-1.32000 is waiting to be tested again.
Passing the important zone will push the price higher to head to the resistance zone at the previous high of 1.33000.
