GBP/USD has been in a downtrend this whole week as the dollar gained strength amid rate hike rumors. The hawkish remarks made by Jerome Powell yesterday further added fuel to the fire. As a result, the Dollar Strength Index is up 1% this week which weighed in on the GBP to USD pair.
The exchange rate for the Pound in terms of the Dollar is currently at $1.22 after falling for five consecutive trading sessions. The pair is expected to find some support around the $1.21 support level. Notably, the pair is down by 7.2% from its yearly peak.
GBP/USD Outlook
GBPUSD has faced a perfect rejection from the 200-MA which is evident in the chart below. The pair is currently sitting 1.9% below the 200 MA level. The bears are expected to have a field day if the cable pair breaks under $1.21 support as this move has the potential to flip the GBP/USD pair forecast extremely bearish.
For the bulls to even have a glimmer of hope, the pair has to make some major moves to reclaim the 200 MA level in the daily chart.