The price movement on the chart of the GBP/USD currency pair on Tuesday showed a daily decline pattern of around 80 pips.
The US dollar showing strengthening in the European session is seen to pressure the price to continue the decline after the previous day's trading failed to pass the resistance level of 1.24000.
The decline, however, did not continue in the New York session following the US dollar trading weaker again.
The price did not drop lower below the 1.23000 zone which became a support during the price until the trade that continued into the Asian session this morning (Wednesday).
Both the US dollar and the Pound continued to trade uncertainly as the market awaited the results of the meeting by the Federal Reserve (Fed) and the Bank of England (BOE) on Thursday tomorrow.
For now, the price movement still gives a bearish signal by moving below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart while a clearer indication is still awaited.
If the decline continues beyond the current support level at 1.23000, the bearish price trend will continue, seeing the price drop lower likely to reach around 1.22000.
A drop could reach up to 1.21000 if the US dollar exhibits a stronger strengthening.
However, if the previous market expectations are met and the US dollar weakens, the price will bounce back from the 1.23000 zone and cross the MA50 barrier before the trend reversal signal.
The continued rise will test the 1.24000 resistance zone which was the focus throughout last week's trading.
Passing the zone will record the latest 8-month high with the next target being to reach around 1.25000.
