Although the US dollar calmed down a bit on Wednesday's trade yesterday from strengthening since the end of last week, but the Pound currency failed to take advantage of the opportunity to rise in the market.
On the other hand, the Pound continued to depreciate lower against the US dollar until trading continued into the Asian session this Thursday morning, recording the latest lowest level in 2 years.
Investors are likely to be cautious expecting the decline in the US dollar to continue until the end of the week with the expectation that the United States (US) NFP data report will record a decline in August employment figures.
If you look at the price movement on the chart of the GBP/USD currency pair, the price is seen to have dropped to the level of 1.16000 in the New York session yesterday before continuing to decline even lower in the Asian session this morning.
The price remains in a bearish trend where the resistance level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart remains preventing the price from making gains throughout the week's trading.
The price drop in the Asian session is seen to reach around 1.15700 and is expected to continue the bearish pattern in the following sessions.
For further downside expectations, the target is around 1.14000 to test the lows touched by the price in the last March 2020 trade.
On the other hand, if the price increase starts to happen, the price needs to break through the MA50 barrier around the 1.16500 level before signaling a bullish trend change on the price chart.
The continued increase is seen to test resistance at the SBR (support become resistance) zone of 1.18000 to record the latest 1-week high.
The next rise will return to the 1.18800 concentration level which was price resistance during last week's trade.
