Is it true that the Bank of England (BOE) is going to raise interest rates by 50 basis points at this week's monetary policy meeting?
With market uncertainty and investor caution, the Pound is still trading gloomy at the opening of the week.
Although it is expected to continue to raise interest rates, but investor confidence in the British currency is still weak with concerns about tax cuts and labor strikes.
The movement of the Pound followed the pace of the US dollar currency as the main focus was directed at the FOMC meeting with the expectation of a slower increase in interest rates by the Federal Reserve (Fed) which was as much as 25 basis points.
The price chart of the GBP/USD currency pair saw stagnant price movement at the 1.24000 resistance zone in the early sessions on Monday yesterday.
In the New York session, prices began to show a pattern of decline again when the US dollar strengthened slightly compared to the previous session's trading.
A drop back below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart gives a bearish signal for further price movement.
If the downward pattern continues, the price is seen to head towards around 1.23000 to test the RBS (resistance become support) zone.
Further declines are likely to reach the previous concentration zone around 1.22000.
But if the surge happens, the attempt to break the 1.24000 resistance wall will be witnessed again by investors.
Successfully breaking higher will push the price towards the target of 1.245000 while recording the latest 7-month high.
