Price movements on the chart of the GBP/USD currency pair are increasingly showing a bearish pattern towards the end of this week's trading.
This is a pressure on the Pound currency while the US dollar is starting to get a strengthening pace albeit at a relatively slow tempo.
Data on consumer confidence in the United States (US) and Gross Domestic Product (GDP) recorded encouraging readings, somewhat changing the previously flat movement of the US dollar.
If observed, the price on the GBP/USD chart which has successfully crossed the support level at 1.21000 has continued to decline lower to reach 1.2000 in the New York session yesterday.
However, the price slowly flattened back in the important support zone, continuing in the trading session of Asia this morning (Friday).
Still showing signs of bearish movement, the price remained below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart, prompting expectations of a further decline today.
If the price continues to decline past the 1.2000 support, the price will go to several targets such as the 1.19400 and 1.18800 levels to record the latest 3-week lows.
However, on the other hand, if the price starts to rise again, the resistance at the 1.21000 zone and the MA50 barrier will be tested for investors to determine if the price is starting to give an indication of a trend change.
Successfully passing the following obstacles will expect a higher increase to continue and will then test the previous concentration zone at 1.22000.
US consumer personal spending data will be monitored in the New York session soon which is expected to influence price movements before the close of trading this week.
