GBP/USD Plunges 100 Pips on Key Powell Cue

<p>&nbsp;The chart of the GBP/USD currency pair at the close of trading last week was also shaken by the market's reaction to the annual event of the Jackson Hole symposium.</p><p><br /></p><p>The US dollar is seen as a significant currency reacting with Federal Reserve (Fed) Chairman Jerome Powell's speech being the main focus for further central bank monetary policy guidance.</p><p><br /></p><p>The US dollar strengthened after a hawkish statement by Powell who stated that the central bank still needs to raise interest rates again in an effort to lower inflation to the target level.</p><p><br /></p><p>However, investors will look forward to a clearer signal heading into the September meeting by examining the latest economic data, especially the economic growth of the United States (US) as well as the NFP employment data report.</p><p><br /></p><p><br /></p><p><br /></p><p>If examined on the GBP/USD chart last Friday, the price managed to make an initial increase to the level of 1.26500.</p><p><br /></p><p>After testing the Moving Average 50 (MA50) barrier on the chart's 1-hour time frame but failing to break it, the price has plunged around 100 pips to reach the 1.25500 level, marking a recent 10-week low.</p><p><br /></p><p><br /></p><p>However, at the close of the last session the price bounced back near the important zone of 1.26000 where the price also hovered slowly in that zone at the opening of trading earlier this week.</p><p><br /></p><p>With the movement signal still bearish, the price is expected to continue its decline lower than the level reached last week.</p><p><br /></p><p>Next, the focus will be on the next focus zone at 1.25000 which is seen to be the latest support for the price while recording the latest lowest level yet.</p><p><br /></p><p>Meanwhile, if the price jumps high after passing the 1.26000 level and the MA50 barrier, the 1.27000 level is targeted to be reached again after the bullish trend change signal.</p><p><br /></p><p>The increase if continued will lead to the resistance zone of the previous weeks which is 1.28000 which is still a defensive wall for the price to break through.</p>