The price chart of the GBP/USD currency pair saw a daily plunge of around 100 pips on Thursday yesterday after the price managed to reach a new 4-month high.
The recovery of the US dollar yesterday has changed the previous price movement pattern that saw the depreciation of the currency king since last week.
Last Wednesday, the price jumped 100 pips from the 1.27000 level to reach the 1.28000 zone.
On Thursday yesterday, the slow rise continued in the Asian session to around 1.28200 before the price plunged back to the 1.27100 level.
The price drop below the Moving Average 50 (MA50) line on the 1-hour time frame on the GBP/USD chart gives an early indication of a bearish trend change again.
The momentum of yesterday's decline, if maintained, will lead to further price declines towards the 1.27000 concentration zone, which is expected to invite an attractive price reaction to indicate the direction of the next movement.
If the breakout is lower, the price will continue yesterday's bearish trend until the close of the last trading session with a target of 1.26000.
Prices that were seen rising again at the start of the European session this evening tested the MA50 barrier that investors are concerned about.
If the price successfully overcomes the obstacle and continues to rise, the 1.28000 zone will be reached again.
The price also has the potential to surpass yesterday's highs to set new records before the end of 2023 trading.
The target is on the 1.29000 concentration zone for the price to reach.
