The chart of the GBP/USD currency pair maintained a bearish pattern until the close of trading at the end of last week.
On Friday, the daily decline was recorded around 100 pips as the continued strengthening of the US dollar put pressure on the Pound which remained gloomy.
In addition to remaining expectations for the Federal Reserve (Fed) to tighten policy, the reading of personal spending data of United States (US) consumers on Friday also added a strengthening factor for the US dollar.
The price decline that passed the 1.20000 level has tracked to the 1.19400 support level, but has not managed to continue the decline lower.
Continuing the opening trade earlier this week, the price hovered slowly around 1.19500, but remained showing movement in a bearish trend that was below the Moving Average 50 (MA50) barrier level on the 1-hour time frame of the GBP/USD chart.
Further decline is expected to continue towards around 1.19000 to record the latest 8-week low.
If the bearish pattern continues this week, the price could reach the 1.18000 zone target.
However, investors cannot rule out the possibility of another price spike.
An early sign will be seen if the price makes an increase testing the MA50 barrier and the 1.20000 zone.
Passing the following resistance will signal a change in the trend to begin with an initial rise that could lead to around 1.21000.
Next, a higher increase will be expected if there are factors that support the strengthening of the Pound against the US dollar in the market.
