Compared to other major currencies, the Pound yesterday was among those that showed significant movement influenced by the market's reaction to the central bank's policy assessment.
This is due to the dovish tone of statements made by Bank of England (BOE) governor Andrew Bailey when answering questions in an interview event held.
In addition to expressing concern over the issue of the Iran-Israel war that could affect the global crude oil market, Bailey also signaled aggressive interest rate cuts to be implemented.
This has led to a significant depreciation of the Pound starting at the beginning of yesterday's European session until continuing into the next trading session.
On the chart of the GBP/USD currency pair, the price has displayed a daily decline of around 170 pips after Wednesday's flat price movement below the 1.33000 zone.
Yesterday's price plunge clearly penetrated the 1.32000 zone and finally reached the next concentration level at 1.31000.
As an observed support zone, the price was seen to reach the 1.31000 level before the movement began to level off and slowly resume trading to the opening of the Asian session this Friday morning.
The trend remains bearish as prices continue to stay below the Moving Average 50 (MA50) barrier line on the 1-hour timeframe on the GBP/USD chart.
With yesterday's momentum, the price is expected to continue the decline lower but needs to pass the 1.31000 zone first.
Next, the price drop is expected to reach around 1.3000 which was also seen as a focus area before.
For the expectation of a price increase, around 1.32000 will be an important zone that will invite a price reaction.
Successfully breaking the zone will signal a trend change with the target for the price to climb to the 1.33000 level.
The price movement at the end of this week is seen to be driven by the United States (US) NFP jobs report.
