The value of the Pound fell again on Wednesday yesterday, failing to maintain the excellent performance at the beginning of the week which initially strengthened against the US dollar.
The US dollar regained its pace of strengthening following market sentiment which was assessed as risky again with the news of the largest daily spike in Covid-19 cases in China, prompting increased movement restrictions in the Guangzhou district.
The focus will be on the release of US inflation data in the New York session later tonight and UK economic growth data on Friday.
Examining the price movement on the chart of the GBP/USD currency pair, the price that previously displayed a bullish pattern for 3 consecutive days until Tuesday then changed direction on Wednesday yesterday.
After rising to a high of 1.16000 on Tuesday, the price started to show yesterday's daily decline of around 230 pips.
The price that fell below the level of 1.15000 also passed the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart indicating a change in the bearish trend.
The decline has reached a level around 1.13400 at the end of the New York session before there is a slow rebound continuing into the Asian session this Thursday morning.
However, the lower decline is expected to continue for the price to test the support level at the beginning of the week which is 1.13000.
The successful decline will continue to the 1.12000 level before the 1.11000 support zone will be the next target.
On the other hand, if there is a rebound in price, the closest resistance is seen to be in the 1.14500-1.15000 zone before investors evaluate the signal of a trend change again.
The continued rise will lead back to the 1.16000 resistance to record the latest high.
