A 130 pips daily price plunge was exhibited on the chart of the GBP/USD currency pair yesterday following the re-strengthening shown by the US dollar.
The pound has fallen to a 10-week low against the US dollar after the bearish price pattern continued in Thursday's trading yesterday.
If previously the US dollar was weakened by the published PMI data, but the king of the currency strengthened again as the market got closer to the Jackson Hole symposium conference.
Looking at the GBP/USD chart yesterday, the price hovering at 1.27200 then plunged back below the 1.27000 level again.
The decline in the European session continued into the New York session until the 1.26000 zone was finally managed to be hit by the price.
The latest low was recorded as the price continued its downward trend in the Asian session this morning (Friday) to around 1.25700.
Staying below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart signals a bearish movement for the price.
The lower decline is expected to continue towards the next concentration zone at 1.25000.
The last time the price tested that level was in early June trading.
Meanwhile, for the expectation that if there is a price increase, a return to the 1.26000 level will likely see the price return to the 1.27000 level.
After the indication of a bullish trend change, the price can continue to rise higher up to the 1.28000 zone.
