The GBP/USD currency pair chart is starting to show signs of a price trend change as significant declines are displayed in recent trading sessions.
The US dollar’s recovery situation that is pushing prices down is driven by President Donald Trump’s statement that he is said to have no intention of firing Federal Reserve (Fed) Chairman Jerome Powell as he had previously threatened.
In addition, the tariff war tension is also starting to ease when Trump announced that negotiations with China are going well.
The tariffs on China are not imposed as high as 145% as previously announced, but the tariff rate will not be zero.
The pound is starting to receive pressure again with the strengthening US dollar as both currencies await manufacturing and services PMI data for the UK and the US.
On the GBP/USD chart, the price increase tested the resistance zone at 1.34000 on Monday and Tuesday yesterday, which is a record high for a 7-month trading period.
The latest high was reached around 1.34200 before the price fell below the Moving Average 50 (MA50) line on the 1-hour chart, signaling the start of a bearish trend.
The price decline continued at the opening of the Asian session this morning (Wednesday) below the 1.33000 level and reached around 1.32400.
However, the price bounced back to the 1.33000 level and leveled off around that until the opening of the European session.
The price increase needs to break through the MA50 barrier if it wants to retest the resistance zone at 1.34000.
If a strong increase is successfully displayed to surpass 1.34000, the latest high can be recorded again with the target heading towards 1.35000.
On the other hand, if the price continues to be pressured down, the support at 1.32000 awaits to be tested by the price that was the focus last week.
A lower decline would see the price reach 1.31000 before continuing the bearish pattern.
