The results of the 2024 United States (US) presidential election have been announced in which the victory is in favor of Donald Trump to lead the administration for the second time.
Since the Asian session on Wednesday yesterday, the US dollar has started to 'show stripes' by strengthening its value following Trump's vote leading until his victory at the end of the event.
The strengthening of the US dollar continued until the European session, but the momentum started to fade in the New York session yesterday.
The price chart of the GBP/USD currency pair saw a daily plunge of more than 200 pips with the strengthening pressure of the US dollar against major currencies including the Pound Sterling.
The pound will be under pressure today (Thursday) when the focus will be on the Bank of England (BOE) policy meeting at the beginning of the New York session later tonight.
The BOE is expected to lower the interest rate by 25 basis points to 4.75%, likely to push the value of the Pound.
On the GBP/USD chart yesterday, the price was seen to have made a decline from the high level near 1.30500 until it penetrated the 1.29000 level.
Price reached around 1.28400 retesting the zone that price tested on last week's decline.
However, there was a rebound for the price hovering around the 1.29000 zone again until the trading continued into the Asian session this morning.
Remaining below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart, the bearish signal anticipates the tendency for the price to continue its decline lower.
A dip back below 1.29000 will push the price to record new lows above yesterday's levels.
The target is around 1.28000 for an extended decline.
However, if the price shows an increase beyond the MA50 barrier, the 1.30000 level will be approached to be tested.
Passing that resistance, a further move higher can be expected for the price to surpass the heights reached before yesterday's plunge took place.
