The price movement pattern on the GBP/USD currency pair chart shows a bearish signal with a daily decline of around 150 pips recorded yesterday Thursday.
This follows the Bank of England (BOE) policy meeting results which have cut interest rates for the third time as expected.
The latest interest rate is at 4.50% after a 25 basis point cut with a majority vote by MPC members.
On the GBP/USD chart, the price showed an initial decline in the European session yesterday before the meeting results at 8pm local time as investors have started to 'price-in' with expectations for a rate cut by the BOE.
Slow movement at the 1.25000 level in the Asian session, the price began to decline in the European session and after the BOE meeting results, the price continued to plunge to penetrate the 1.24000 focus level.
Reaching a daily low of around 1.23500, the price rebounded as it headed towards the end of the New York session before closing around 1.24300.
The price movement, which is currently below the Moving Average 50 (MA50) resistance line on the 1-hour chart, is showing a bearish signal and is expected to continue yesterday's pattern.
If the price moves below 1.24000, further declines are expected to surpass yesterday's 1.23500 before heading to 1.23000.
If the price continues to decline, the next target is the 1.22000 zone.
On the other hand, if the price manages to make an increase in the final sessions for this week, the nearest resistance is at 1.25000 to be tested.
After the trend change signal, the price has the potential to record new highs again but needs to first overcome the 1.25500 level reached last Wednesday.
