The Pound fell lower against the US dollar at the opening of the market earlier this week after coming under pressure from the currency king's strengthening at the close of trading last week.
The Jackson Hole symposium event focused on a speech by Federal Reserve (Fed) Chairman Jerome Powell with a hawkish signal for the central bank to continue aggressive interest rate hikes despite having to 'hurt' the economy.
This has invited a surge in the value of the US dollar in the New York session last Friday to add pressure to the Pound which has been moving dismal in recent weeks.
Looking at last Friday's trading on the chart of the GBP/USD currency pair, the price showed a rise from the 1.18000 zone and tested the 1.18800 resistance.
But failing to continue rising higher, the strengthening of the US dollar has pushed the price back below the 1.18000 level.
Price moving below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart also gives an indication of bearish movement.
The price that started trading at the beginning of this week at the support level of last week around 1.17200, the price drop continued until it reached around 1.16600.
This is the latest lowest price level for a period of 2 years, which is the lowest since March 2020.
If observed, trades in March 2020 last reached up to around 1.14000, and this may potentially be a target for prices on the decline that continues this week.
On the other hand, if there is a price increase again, resistance at the 1.18000 zone will be tested before crossing the MA50 barrier to signal a change in the bullish trend again.
The continued rise will once again test the resistance that failed to be passed last week which is at the 1.18800 zone.
