The US dollar, which maintained its strength until the end of last week's trading session, pushed the Pound currency down to the lowest level ever reached in the last July trading session.
Prospective investors are looking forward to the release of data that will give a response to the US dollar currency, namely the release of manufacturing and services data (PMI) and also the reading of economic growth in the second quarter of the United States (US).
In addition, investors will monitor the discussion at the annual focus event of the Jackson Hole symposium which will bring together important people in the global financial market such as central bank governors, finance ministers and others.
As for the Pound currency, investors will look forward to the release of UK manufacturing and services data (PMI) on Tuesday for an assessment of the current performance of the UK economy after being threatened by peak inflation.
Monitoring the price action on the GBP/USD currency pair price chart over the past week, prices have plunged until the end of the week trading saw a new 5-week low recorded.
Since the UK inflation data was published last Wednesday, prices have shown a decline until they passed the support level at 1.2000 and the New York session on Friday saw prices drop to the 1.18000 support zone as expected by analysts.
After a daily decline of around 140 pips was recorded last Friday to the level of 1.18000, the price is seen to have leveled off around that until continuing at the opening of trading earlier this week.
Investors will continue to evaluate the price movement to be in a bearish trend where the price is still moving below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart with the expectation that the price decline will continue this week.
If the price manages to continue its decline past the 1.18000 support zone, the price will record the latest 6-week low with the next target being to reach around 1.16000.
However, if the price bounces from the 1.18000 zone again, the price is expected to test the MA50 barrier level first and also the resistance at 1.18800 and 1.19400 before investors evaluate the indications for a bullish trend change.
Next, for the continued higher increase, the price will retest the 1.2000 level which is expected to form the latest SBR (support become resistance) zone for the price.
