After the horizontal movement of the price was displayed for a while, it now clearly shows a change in the pattern on the chart of the GBP/USD currency pair yesterday.
The bearish trend change situation was triggered by the strengthening of the US dollar which was influenced by risk-off market sentiment with heightened tensions in the Middle East.
Iran reportedly launched a massive missile attack on Israel yesterday targeting key locations.
Israel is expected to launch a retaliatory attack after this, expecting the risk-on market sentiment to continue for a longer period.
Thus, the strengthening of the safe-haven US dollar also put pressure on the Pound, which retreated from the 30-month high reached last week.
After the price advance was previously halted as far as the height level of 1.34300, a significant decline in the price started showing yesterday for the price to move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the GBP/USD chart as a bearish signal.
The decline has been shown since the European session again and continued in the New York session to reach a level around 1.32400.
However, the price bounced a little at the close of the session and the horizontal price movement in the Asian session this morning (Wednesday) hovered below the 1.33000 zone.
The lower price drop will be expected to continue after this to head towards the next concentration zone at 1.32000.
In fact, if the war situation continues to be tense, the price can plunge further down with some important concentration levels before being hit again such as 1.31000 and 1.3000.
On the other hand, if the price gradually recovers to make an increase above the 1.33000 level, there is still potential for the price to go back to the 1.34000 zone.
After a change in the market situation, the price is likely to be able to reach the latest high level again up to the target of 1.35000.
See the picture of the GBP/USD pair price chart below for your technical analysis reference.
The chart displayed above uses the Saracen Market platform. Redeem a $5.00 no deposit bonus if you sign up today CLICK HERE – SIGN UP AND REDEEM NOW
