As predicted by analysts, the price movement on the chart of the GBP/USD currency pair continues to extend the downward trend at the beginning of this week.
With monetary policy factors by both the Federal Reserve (Fed) and the Bank of England (BOE) following signals at last week's meeting, investors maintained expectations for both the US dollar and the Pound.
The pound will continue to trade gloomy while the US dollar will continue to dominate if there are no other influencing factors.
On the GBP/USD chart, the price meets expectations to approach the 1.22000 level which is the support when making the price.
The decline that continued in the early trading of the week yesterday saw the price hit a new 6-month low.
With movement below the Moving Average 50 (MA50) barrier on the 1-hour timeframe on the GBP/USD chart being a bearish signal for prices, investors see a tendency for prices to continue to decline further.
After passing the current support at 1.22000, the decline will continue towards around 1.21000 as the next focus target.
The last time prices traded at that level was last March before the surge continued until July.
However, it is not impossible for the price to change direction and increase again after this if there are factors that influence the reaction of investors in the market.
A price increase that crosses the MA50 barrier is an early sign for a trend change to occur.
The rise is likely towards the 1.23000 level to test the nearest resistance before extending the climb higher to last week's focus zone, 1.24000 again.
