GBP/USD Will Continue Falling Again This Week?

<p>&nbsp;It is clear to see a change in the price pattern on the chart of the GBP/USD currency pair last week with both currencies affected by several important factors.</p><p><br /></p><p>The US dollar started to recover from its previous decline as the market prepares to head to this week's FOMC meeting with expectations that interest rate hikes will be implemented by the Federal Reserve (Fed).</p><p><br /></p><p>A follow-up speech by Fed Chairman Jerome Powell will be an important indicator in setting the market's next direction as the policy tightening cycle is expected to come to an end.</p><p><br /></p><p>The Pound Sterling last week experienced a significant fall in value influenced by the release of UK inflation data which saw the fall in June inflation figures being lower than forecast.</p><p><br /></p><p>The Pound's dismal performance continued into late trade last week, and investors expect the situation to continue into this week.</p><p><br /></p><p><br /></p><p><br /></p><p>Examining the GBP/USD chart, the price which had plunged below the 1.30000 level when the inflation data reacted, extended the decline lower past the 1.29000 level.</p><p><br /></p><p>Last Friday, the price was seen to test the level of 1.29000 but fell again to the level of around 1.28200 for a record low of 1 week.</p><p><br /></p><p><br /></p><p>Price movements remain below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart, indicating that prices will continue to move in a bearish trend.</p><p><br /></p><p>With the expectation that the US dollar will continue to strengthen again, prices are expected to continue falling beyond the lowest level reached last week.</p><p><br /></p><p>Further declines could reach around 1.27000 which was the focus zone in early July trading.</p><p><br /></p><p>However, if the price makes a jump past the MA50 barrier and breaks through 1.29000, this will give investors an early signal for a change in the price trend again.</p><p><br /></p><p>The continued rise can lead back to the concentration level of 1.30000 and if the price continues to rise, the 1.31000 zone will be tested.</p>