Bearish Indicator! GBP/USD Slides Lower Towards $1.2200

<p>&nbsp;Both the Pound and the US dollar which were affected by the results of the central bank meeting last week showed a clear direction in the price movement on the chart of the GBP/USD pair.</p><p><br /></p><p>After the Federal Reserve (Fed) kept interest rates at 5.50%, the market digested a hawkish signal when rate hikes are expected to continue after this to tame rising inflation.</p><p><br /></p><p>Meanwhile, the Bank of England (BOE) surprised the market when it acted to stop interest rates at 5.25% at the latest meeting last week after raising rates 14 times in a row before.</p><p><br /></p><p>Thus, the strengthening of the US dollar while the pound is shrinking has led to a continuous downward price pattern on the GBP/USD chart.</p><p><br /></p><p><br /></p><p><br /></p><p>At first it can be seen that the price hovered in the 1.24000 zone before the price plunged and finally penetrated 1.23000.</p><p><br /></p><p>The lowest level was reached around 1.22350 until last week's trading session also ended around that.</p><p><br /></p><p><br /></p><p>Remaining with a bearish signal, the price movement is still below the Moving Average 50 (MA50) barrier level on the 1-hour time frame of the chart.</p><p><br /></p><p>A further drop in price will be expected with the target being to test the 1.22000 support zone.</p><p><br /></p><p>If the decline lower continues, the price focus will shift to around 1.21000 as well as record the latest low.</p><p><br /></p><p>However, if the price bounces up to make an increase, the 1.23000 level is seen as the initial resistance to be tested after the MA50 barrier is successfully overcome.</p><p><br /></p><p>Continuing the move higher would expect the price to return to the concentration zone of last week before the price plunge, which is around 1.24000.</p>