The Closer to the BOE Meeting, the More Severe the GBP/USD Crash!

<p>&nbsp;While the US dollar is increasingly dominating, the Pound currency is losing ground this week.</p><p><br /></p><p>The United States (US) ADP employment data report saw job growth in the private sector record a higher figure than forecast for July.</p><p><br /></p><p>This gives a positive indication ahead of the NFP report on Friday in addition to reducing the pressure on the credit downgrade factor towards the US.</p><p><br /></p><p>The pound continues to suffer as the central bank of England's policy meeting approaches.</p><p><br /></p><p>The Bank of England (BOE) at today's meeting is expected to raise interest rates for the 14th time in a row, but the situation is still seen as failing to give confidence to the Pound.</p><p><br /></p><p><br /></p><p><br /></p><p>On the chart of the GBP/USD currency pair, the price continued the downward pattern on Wednesday trading yesterday with a daily decrease of around 120 pips recorded.</p><p><br /></p><p>The drop to the latest 4-week low was in line with analysts' forecasts where the price tested the important zone at 1.27000.</p><p><br /></p><p><br /></p><p>Touching a slight low below 1.27000, the price then rebounded to hover slowly above that level until the opening of the Asian session this morning (Thursday).</p><p><br /></p><p>The price that remains moving below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart continues to give a bearish signal for the price.</p><p><br /></p><p>A further decline could reach the 1.26000 level which is seen as the latest target if the price continues to decline further.</p><p><br /></p><p>However, the price movement will depend on the market's reaction to the decision of the BOE meeting shortly.</p><p><br /></p><p>In case of a surge, the price can reach up to the 1.29000 level after breaking through the previous MA50 barrier.</p><p><br /></p><p>If the resistance is also successfully broken, last week's resistance level at 1.30000 will be the focus for the price to reach.</p>