A bearish pattern was shown on the chart of the GBP/USD currency pair yesterday, but was not very significant and was still mixed in determining a clearer direction.
The US dollar did not show a significant reaction yesterday despite the economic data of the United States (US) published with encouraging readings, namely the consumer confidence survey and JOTLS total job offer data.
Drastic price movements will be expected when interest rates are announced at the FOMC meeting early Thursday morning, with a follow-up speech by Federal Reserve (Fed) Chairman Jerome Powell will be given full attention by the market.
Meanwhile, the Pound is awaiting the results of the Bank of England (BOE) meeting at 8pm tomorrow with the expectation that the interest rate will still be maintained at 5.25%.
Examining the GBP/USD chart, the price is still seen to be moving closer to the 1.27000 zone since last week and continued until this week.
There was a decline yesterday reaching around 1.26400, surpassing last week's lows, but the price bounced back to close the trade at the end of the New York session at 1.27000.
The price is seen not to pass the important zone and slightly decreased in the Asian trading session this morning (Wednesday) after the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart was also not successfully passed.
Therefore, it is still seen that the price movement pattern is more likely to move in a bearish trend again, but any surprises can happen ahead of the policy meeting for the two central banks.
If a price increase occurs, the target is still directed towards the 1.26000 support level tested in mid-January trading.
Breaking lower will show a more clear bearish trend and the price will also record a recent 7-week low.
However, if the price rises beyond the 1.27000 level, this will be an early signal for a bullish movement to support the price out of the previous horizontal zone.
The continued rise is expected to lead to the resistance zone at 1.28000 after the last time the price tested that zone was at the end of last December.
It is not impossible for a higher increase to be able to be exhibited following the impact of the market reaction to the central bank policy meeting this week.
