Making Investors Worry More, GBP/USD Still Losing Direction

<p>&nbsp;Resuming trading on Tuesday yesterday, the price movement on the chart of the GBP/USD currency pair still exhibits a horizontal movement with an attempt to make an increase.</p><p><br /></p><p>If observed, the 1.27000 level is still a support for the price with the price seen hovering in the RBS (resistance become support) zone since last week.</p><p><br /></p><p>The price moved in a range of 50 pips throughout Tuesday yesterday with a height reached only at the 1.27500 level.</p><p><br /></p><p>However, the price that has been above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart gives an early signal for the price increase to continue to a higher level.</p><p><br /></p><p>Both the Pound and the US dollar are now seen to be moving at par and their respective central banks are still in the phase of maintaining their monetary policy tightening.</p><p><br /></p><p>The focus will also be on the indications by the governors of the two central banks, Jerome Powell (FED) and Andrew Bailey (BOE) who attended the ECB forum in Sintra today.</p><p><br /></p><p>Any statement that is thrown out gives a clear indication of the next policy step, will have an impact on currency movements in the New York session later.</p><p><br /></p><p><br /></p><p>For the expectation that if the price increase happens, the price that jumps from the MA50 support will go to the resistance zone tested last week around 1.28400.</p><p><br /></p><p>Successfully breaking through that resistance would record the latest high for the price since April 2022.</p><p><br /></p><p>However, if on the other hand the price shows a plunge to pass the 1.27000 level, it will be a signal for a bearish movement for the price.</p><p><br /></p><p>A lower decline is seen to head towards the 1.26000 concentration zone before extending further to the next zone of 1.25000 if the decline continues.</p>