In contrast to the more positive Euro, the Pound Sterling experienced a decline in trading on Wednesday yesterday as the focus was on the speech of the Governor of the Bank of England (BOE), Andrew Bailey.
The BOE has previously signaled an early halt to policy tightening, and in Bailey's speech yesterday, he said a further hike in interest rates may be necessary but has yet to make a decision.
It is still necessary to observe the effects of previous monetary policy tightening on the economy before making further policy decisions.
Although market sentiment was restored by positive data from the Chinese economic sector that weakened the US dollar, but failed to benefit the Pound.
Therefore, the price chart of the GBP/USD currency pair on Wednesday yesterday showed a daily decline of around 120 pips.
While the increase was initially headed towards the 1.21000 level, the price plunged again until it reached around 1.19700 before closing the New York trading session above the 1.2000 level again.
Continuing trading in the Asian session this Thursday morning, the price is still hovering slowly at the 1.2000 level, but investors see a bearish indication with the price now below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart.
If the price continues to decline below 1.2000, the support level around 1.19000 is seen to once again be in focus as it was trading earlier this week.
A further decline is possible with the latest lowest price target expected to reach around 1.18800.
However, if the price manages to rebound from the 1.2000 zone, the price increase is seen to need to test the initial resistance at 1.21000 before re-challenging the height reached this week and last week which is around 1.21400.
