The pound fell lower against the US dollar to its latest low since March 2020 in early trading yesterday.
This is due to the strengthening of the US dollar in the Asian session yesterday which continued the hawkish momentum by Federal Reserve (Fed) Chairman Jerome Powell regarding the setting of monetary policy in Jackson Hole at the end of last week.
However, the strengthening of the US dollar that failed to continue in the European session saw the Pound recover to rise again until ending the New York session.
On the price chart of the GBP/USD currency pair, it can be seen that the initial decline in the Asian session yesterday has reached the level of 1.16500 which is the latest current support level for the price and the lowest record in 2 years.
However, the price managed to show an increase again with a high level reached around 1.17400 before closing the trading of the New York session around 1.17000.
Although it started to rise again, the price still hovering below the resistance level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart remains a signal for movement for a bearish trend.
The decline is expected to continue to overcome the current support level at 1.16500 before making another recent 2-year low.
The focus for the extended decline is at 1.16000 before the price targets the lowest level reached in March 2020 then around the 1.14000 zone.
Meanwhile, for the expectation of a price increase, the resistance at 1.17600 to 1.18000 will be the initial focus of the price test before the price that passes the zone starts to signal a change in the bullish trend.
A higher move will advance again towards the 1.18000 level which is the price resistance that failed to break through last week's trade.
