Both the Pound and the US dollar which were affected by the results of the central bank meeting last week showed a clear direction in the price movement on the chart of the GBP/USD pair.
After the Federal Reserve (Fed) kept interest rates at 5.50%, the market digested a hawkish signal when rate hikes are expected to continue after this to tame rising inflation.
Meanwhile, the Bank of England (BOE) surprised the market when it acted to stop interest rates at 5.25% at the latest meeting last week after raising rates 14 times in a row before.
Thus, the strengthening of the US dollar while the pound is shrinking has led to a continuous downward price pattern on the GBP/USD chart.
At first it can be seen that the price hovered in the 1.24000 zone before the price plunged and finally penetrated 1.23000.
The lowest level was reached around 1.22350 until last week's trading session also ended around that.
Remaining with a bearish signal, the price movement is still below the Moving Average 50 (MA50) barrier level on the 1-hour time frame of the chart.
A further drop in price will be expected with the target being to test the 1.22000 support zone.
If the decline lower continues, the price focus will shift to around 1.21000 as well as record the latest low.
However, if the price bounces up to make an increase, the 1.23000 level is seen as the initial resistance to be tested after the MA50 barrier is successfully overcome.
Continuing the move higher would expect the price to return to the concentration zone of last week before the price plunge, which is around 1.24000.
