The price movement on the chart of the GBP/USD currency pair on Wednesday yesterday broke the 37-year low price record, which is the lowest since 1985!
The Pound continued to trade gloomy after the central bank of England's monetary policy report was scrutinized yesterday. Policymakers are still looking at policy tightening measures to continue with the expectation of an interest rate hike still to be implemented at next week's meeting.
Although it showed a decrease on the price chart against the US dollar in the European session, it was a different story in the trading that continued into the New York session.
The price which initially made a decline past the support level of 1.14500 and reached a recent low close to around 1.14000, then bounced back around 130 pips.
This is following the depreciation that occurred against the US dollar currency which failed to maintain its strengthening momentum before that.
Investors are more cautiously awaiting a speech by Federal Reserve (Fed) Chairman Jerome Powell tonight for an indication of monetary policy setting after the hawkish tone presented at the last Jackson Hole symposium.
Investors are now looking for clearer signals to assess price trend changes as prices are still testing the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the continued GBP/USD chart in the Asian session this Thursday morning.
If the price increase is successfully extended, the price is seen to test the level of 1.16000 which was a resistance that failed to be broken last Tuesday.
A successful move higher to continue for a more clear bullish trend signal will be encouraged to head up to the concentration zone at 1.18000.
On the other hand, if the price resumes a lower decline, it is not impossible that the latest low will be recorded again past around 1.14000 which the price hit yesterday.
For a lower downside target, the price is likely to drop to the 1.13000 level or even lower towards around 1.12000.
