GBP/USD Hurt, Price Breaks $1.2700 Down to $1.2600

<p>&nbsp;Although the Bank of England (BOE) surprised the market with a bigger-than-forecast interest rate hike at its policy meeting last week, unfortunately the Pound still failed to shine.</p><p><br /></p><p>Its value continued to depreciate this week against the US dollar which is absorbing factors that support the central bank's monetary policy tightening measures.</p><p><br /></p><p>Last Wednesday, Federal Reserve (Fed) Chairman Jerome Powell's speech re-injected the strengthening of the US dollar by reiterating that the central bank will continue to raise interest rates several more times by the end of 2023.</p><p><br /></p><p>It can be observed on the chart of the GBP/USD currency pair that the price reaction shows a significant drop after passing the important support level at 1.27000.</p><p><br /></p><p>The price has finally touched the next focus level at 1.26000 as the decline continues again in the New York session yesterday.</p><p><br /></p><p>The situation is driven by the economic growth data of the United States (US) which saw the final reading show a figure that jumped further than the forecast and also the previous reading.</p><p><br /></p><p>This continues to add pressure on the Pound, and prices are likely to continue the downward trend at the close of June 2023.</p><p><br /></p><p><br /></p><p>The price movement slowed above the 1.26000 zone in the Asian session this morning, but remained hovering below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart, indicating a bearish movement signal.</p><p><br /></p><p>If the price continues to decline below the 1.26000 level which is now the support level when making the price, the target is to head towards the 1.26000 zone.</p><p><br /></p><p>The level was tested on June 12 before the market witnessed a surge in prices that recorded the highest level since April 2022 during that week.</p><p><br /></p><p>On the other hand, if there is a rebound in price, crossing the MA50 barrier will expect the 1.27000 level to return to the focus to be tested again.</p><p><br /></p><p>If it manages to pass to a higher level, it is possible that the resistance zone of the previous week at 1.28400 will be reached in price.</p>