The pound fell sharply in Thursday's trade despite the central bank raising interest rates at its last monetary policy meeting of the year.
The Bank of England (BOE) fulfilled the forecast of raising the interest rate by 50 basis points to 3.50%, but the market assessed the increase as more 'dovish' with the vote on the interest rate decision by 9 members being mixed.
Meanwhile, the US dollar showed significant strengthening in the recent sessions following the 'hawkish' comments by Federal Reserve (Fed) Chairman Jerome Powell, although initially when the results of the FOMC meeting were announced, there was a mixed price reaction.
Therefore on the price chart of the GBP/USD currency pair yesterday Thursday saw a daily decline of up to 270 pips recorded.
The price that reached a peak of 1.24400 this week then plunged to reach the 1.21600 level as it neared the end of the New York session.
The price falling significantly below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart is also an indication of a bearish trend change for the price.
After exhibiting the drastic plunge, the price movement slowed down until it continued into the Asian session this morning (Friday), slowing down in the 1.22000 focus zone.
With that pattern, the tendency of the price is seen to continue the decline from the 1.22000 zone and is about to head to the 1.21000 zone.
Next, the price is likely to reach the 1.2000 or 1.19400 level which was the focus of trading last November, if the bearish trend continues.
As for the expectation of a price increase, the initial concentration level seen to be tested is at 1.23000 first.
A further move higher is likely to break the MA50 barrier and signal a bullish trend change again before the 1.24000 level will be the target.
