The price movement on the chart of the GBP/USD currency pair began to flatten on Wednesday yesterday as the strengthening momentum of the US dollar began to fade.
However, the focus is still on the monetary policy presentation by Federal Reserve (Fed) Chairman Jerome Powell yesterday for the second day.
After a significant reaction was exhibited last Tuesday, investors were seen to take more precautionary measures yesterday while also awaiting the release of the United States (US) NFP employment data report at the weekend.
The US dollar is expected to continue to strengthen and this will add more pressure to the Pound Sterling which remains with a dismal performance.
The UK economic growth data report will be in focus on Friday tomorrow and will influence the current movement of the Pound.
The GBP/USD chart on Wednesday yesterday was flat in the 50 pips range with the price seen hovering above the 1.18000 support level.
However, price movements below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart still indicate a downward trend for prices.
The price needs to pass the support of 1.18000 before continuing to decrease further with the target to reach around 1.17000.
However, the price increase can happen especially at the end of the week when the profit-taking activities of market players take place.
For the expected increase, the price will return to the SBR (support become resistance) zone at 1.19000 which was previously an important support and was finally broken through last Tuesday.
Crossing that important zone and the price also crossing the MA50 barrier can signal a change in price direction again.
The price increase may continue towards the concentration zone at 1.20000.
