After displaying a horizontal movement since last week, the price on the GBP/USD currency pair chart on Thursday plunged out of the 100 pips sideways zone.
Previously, the price hovered in a range between the resistance level at 1.26000 and the support level at 1.25000.
However, last Wednesday the price movement slowed down below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart, showing a bearish signal.
On Thursday, the price finally plunged quickly to break through the 1.25000 level to exit the horizontal zone with a daily decrease of around 180 pips recorded.
The situation was driven by the strengthening of the US dollar, which continued its excellent performance at the opening of 2025 trading.
While there are no factors supporting the Pound, the US dollar will continue to exert further pressure.
The decline also penetrated the next expected level at 1.24000 before reaching around the level near 1.23500.
The price movement slowed towards the end of the New York session and continued trading in the Asian session this morning (Friday), the price approached the 1.24000 level.
The level is seen as a resistance for the price to test with the expectation that the downward price pattern will continue.
If it continues downward, the price is seen to target 1.23000 as the nearest focus area.
However, if the price is able to continue climbing higher past 1.24000, the increase can head back up to the 1.25000 level which was the previous price support.
