The bearish pattern continued on the GBP/USD chart yesterday Thursday after the reaction to the FOMC meeting began.
After the Federal Reserve (Fed) gave its answer regarding the last meeting of 2024, the focus shifted to the Bank of England’s policy meeting.
The Bank of England (BOE) as expected, kept interest rates unchanged at 4.75% before investors saw a significant price drop.
This was driven by the central bank’s signal in its follow-up statement to maintain policy easing next year although it has not decided on the timing and frequency of rate cuts to be made.
On the GBP/USD chart, it can be observed that the price recovered from the plunge during the FOMC which climbed back up to around 1.26650 before continuing to decline.
In the New York session, the price plunged another 160 pips to penetrate 1.26000 and reach the latest target zone at 1.25000 which was the price support zone in November.
The price movement began to slow around the zone until trading resumed in the Asian session this morning (Friday).
The bearish price pattern is expected to continue while investors watch the latest indications in the UK retail sales data report in the European session today.
If the decline continues, the price is seen to head towards the level of around 1.24000 while recording the latest 7-month low after surpassing November trading.
However, if the price rebounds in the final closing sessions of this week, surpassing the 1.25000 level, an increase is expected to return to around 1.26000.
Investors will also be examining the movement of the US dollar currency which will be influenced by the PCE index data published tonight.
