The GBP/USD currency pair chart is increasingly active, continuing its downward trend on Wednesday as the US dollar managed to maintain its momentum.
Although the United States (US) economic data published in the New York session yesterday was mixed, the US dollar still showed its strengthening.
Donald Trump is reportedly considering declaring a national economic emergency in preparation for a legal basis for a series of tariffs on countries in focus.
The FOMC meeting minutes that were examined also saw policymakers take a cautious approach to potential changes in trade policy under the Trump administration after this.
Investors' attention will be directed to the NFP jobs report on Friday after the initial signal was observed in the ADP data yesterday.
The GBP/USD chart, which hovered slowly below the 1.25000 zone in the Asian session yesterday, was later seen to have plunged rapidly in the European session to penetrate the 1.24000 level.
The daily drop was recorded around 170 pips above last week's level and reached 1.23200, thus recording a new 9-month low.
The decline continued today (Thursday) testing the 1.23000 zone in the early European session with a bearish signal that the price was below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart.
If the decline continues, the next price target shifts to the lower focus zone at 1.22000.
However, if the price rebounds, the nearest resistance is at 1.24000 to be tested before the MA50 barrier is attempted for the price to break through.
After there is a trend change signal, the price can rise higher to reach the 1.25000 level and previous focus levels.
