The bearish price movement on the chart of the GBP/USD currency pair shows weak momentum since the previous few sessions.
With the results of the FOMC meeting early this morning, investors began to prepare to expect a change in direction on the chart.
This is due to dovish signals by Federal Reserve (Fed) Chairman Jerome Powell to prepare for interest rate cuts in September.
The US dollar showed a decline after the meeting but there was no drastic price movement due to the Pound currency also being under pressure.
The focus will be on the Bank of England's (BOE) policy meeting today, which is expected to cut interest rates by 25 basis points.
The price movement on the GBP/USD chart which is above the Moving Average 50 (MA50) support line on the 1-hour time frame in this morning's Asian session suggests the beginning of a bullish price movement.
For a higher price increase, the target is at the 1.29000 level as the initial resistance to be tested.
Passing the resistance will encourage a higher increase until it reaches 1.30000 in the event of a significant decline in the value of the US dollar.
However, if the Pound's situation worsens after the BOE meeting later, it is possible that the price is at risk of falling lower than the previous level.
The current support zone for the price is at 1.28000 and if it is broken, the price can fall lower until the expectation reaches 1.27000.
