The absence of high-impact economic data as well as critical developments in the UK made the movement of the Pound remain gloomy at the beginning of the week.
Coupled with the re -strengthening of the US dollar yesterday has triggered a bearish pattern on the chart of the GBP/USD currency pair.
The development of Brexit however is still being monitored after the issue of the previous Northern Ireland protocol again increased uncertainty between the UK and the European Union (EU).
The return of risky market sentiment as well as hawkish comments by members of the Federal Reserve (Fed) on monetary policy have injected a strengthening US dollar which has been moving weak for several weeks.
The decline of around 80 pips recorded on the GBP/USD chart yesterday has added to the expectation of the price tendency to display a change in the direction of movement as well as ending the previous bullish trend.
The price movement is seen to have started hovering below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame after the decline that occurred at the beginning of the Asian session trading yesterday.
Continuing the European session yesterday, the price declined to pass the support level at 1.26000, but after hitting around 1.25600 the rebound price made a rise again to end the trading of the end of the New York session around 1.26000 again.
The horizontal price movement in the Asian session this morning is still in the 1.26000 zone with the expectation that the lower decline will continue in the following trading sessions.
The decline will lead to the RBS zone (resistance become support) at 1.25000 to re -test the zone that has managed to curb the price fall last week.
The price that remains continues to decline beyond the zone and will then head to the previous focus zones at 1.24000 or at 1.23000.
However, if the price increase occurs again, the upward trend of the past few weeks will continue again with the price target is heading to the 1.27000 zone to record the latest 5 -week high.
