While the US dollar is increasingly dominating, the Pound currency is losing ground this week.
The United States (US) ADP employment data report saw job growth in the private sector record a higher figure than forecast for July.
This gives a positive indication ahead of the NFP report on Friday in addition to reducing the pressure on the credit downgrade factor towards the US.
The pound continues to suffer as the central bank of England's policy meeting approaches.
The Bank of England (BOE) at today's meeting is expected to raise interest rates for the 14th time in a row, but the situation is still seen as failing to give confidence to the Pound.
On the chart of the GBP/USD currency pair, the price continued the downward pattern on Wednesday trading yesterday with a daily decrease of around 120 pips recorded.
The drop to the latest 4-week low was in line with analysts' forecasts where the price tested the important zone at 1.27000.
Touching a slight low below 1.27000, the price then rebounded to hover slowly above that level until the opening of the Asian session this morning (Thursday).
The price that remains moving below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart continues to give a bearish signal for the price.
A further decline could reach the 1.26000 level which is seen as the latest target if the price continues to decline further.
However, the price movement will depend on the market's reaction to the decision of the BOE meeting shortly.
In case of a surge, the price can reach up to the 1.29000 level after breaking through the previous MA50 barrier.
If the resistance is also successfully broken, last week's resistance level at 1.30000 will be the focus for the price to reach.
