The price movement on the chart of the GBP/USD currency pair still shows a bearish pattern with the decline continuing in the New York session yesterday.
Initially, the price increase was displayed around 100 pips reaching the level of 1.22700 before the price plunged again 140 pips to reach the level of 1.21300.
The US dollar is seen still trading stronger after the economic data of the United States (US) published anticipates the possibility for the Federal Reserve (Fed) to continue policy tightening.
Market sentiment is also assessed to be risky with the news of Europe-Russia tensions regarding the oil issue as well as renewed tensions of the Russia-Ukraine war causing concern for the global market.
The price on the GBP/USD chart that made the initial increase was seen to be blocked by the Moving Average 50 (MA50) level on the 1-hour time frame before continuing to decline.
The bearish pattern is expected to continue today with the next price target to be tested at 1.21000.
Next, the price that continues to decline beyond that level will go to the concentration zone in the past week, which is around 1.2000.
However, a change in price direction can happen at any time as price movements are expected to be volatile until the end of the week.
If there is a rebound in price, the initial resistance that will be tested is seen at 1.22000 before the MA50 barrier level will also be tested.
Breaking the following resistance will push the price higher again to the 1.23000 zone.
The high level reached earlier in the week is likely to be overcome if the price continues the bullish trend movement and will then record the latest 6-month high.
