A bearish pattern started to show on the chart of the GBP/USD currency pair yesterday which changed from last week's movement.
The US dollar has returned to show its strengthening yesterday after investors awaited the change from last week following a hawkish signal by the Federal Reserve (Fed) on its monetary policy projections.
The pound is at risk this week awaiting the release of UK inflation data at the start of the European session shortly before the next focus shifts to the Bank of England's (BOE) policy meeting on Thursday.
The BOE which is expected to raise interest rates at the latest meeting could have the effect of further strengthening the Pound currency in the market.
But now, the pressure is felt when the US dollar seems to dominate again since yesterday.
If observed, the price moves below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart, indicating a change in the price trend will begin at the beginning of the week.
A daily decline of around 80 pips was recorded on Tuesday yesterday almost touching the 1.27000 level.
The zone is seen to function as the latest RBS (resistance become support) with a price rebound shown before the price closed around 1.27600 at the end of the New York session.
With yesterday's downward momentum, the price is likely to continue its decline today and will test the RBS 1.27000 zone once again.
If it manages to break through lower, the price will retrace to the 1.26000 concentration zone after displaying a more clear bearish movement.
On the other hand, if the price bounces back past the MA50 barrier, the price will try to overcome last week's high before heading towards the 1.29000 target.
Reaching that height would be the price's latest record high since April 2022.
