A bearish pattern is still visible on the GBP/USD chart after further declines in the opening trade yesterday.
Certainly the movement for the Pound currency this week will be turbulent with the UK employment data due to be published in the European session shortly and the next focus will shift to the UK inflation data on Wednesday.
The US dollar still maintained its strength at the beginning of the week while also being supported by risk-off market sentiment influenced by China's current economic concerns.
On the GBP/USD chart yesterday, the price which climbed slowly to the 1.27000 level was seen to fail to break through that resistance before plunging to the 1.26200 level.
Not having time to touch the 1.26000 level, the price bounced back to the 1.27000 level and the price movement slowed below it until it resumed trading at the beginning of the Asian session this morning (Tuesday).
Still signaling bearish, the price remains hovering below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart as the market awaits key data releases.
If the price decline occurs again, the 1.26000 support zone is still the focus to be tested which has not yet been breached.
After finally breaking through, the bearish movement that will continue is seen to lead to around 1.25000.
On the other hand, if the displayed price surge situation overcomes the MA50 barrier and the current resistance at 1.27000, the price will try to go to the SBR (support become resistance) zone at 1.28000.
Next, a clear bullish trend change will drive the price higher to the 1.29000 concentration zone.
