The price chart of the GBP/USD currency pair was seen rebounding in the early trading yesterday, not continuing the downward trend at the end of last week.
The price slightly reduced some of the losses after a plunge of around 130 pips was displayed as the US dollar managed to strengthen until the last session of last week ended.
The final reading of the UK services PMI data to be published in the European session will soon be in focus and will influence the current movement of the Pound.
On Monday yesterday, the price made a rebound above the 1.26000 level up to the 1.26400 level before being blocked by the Moving Average 50 (MA50) level on the 1-hour timeframe on the GBP/USD chart.
Horizontal price movement continued trading in the Asian session this morning (Tuesday) around 1.26200 with the MA50 still restrained.
If pressed again, the price is likely to drop below the 1.26000 level and continue to decline again like last week.
A lower drop is expected to head towards the 1.25000 zone for a record low price for the 12-week trading period.
However, if the price manages to jump above the MA50 barrier, this will change the bullish situation again.
The price increase will go back to the 1.27000 level which is seen as a resistance for the price that needs to be tested.
The level was also tested last Friday before the price plunged again.
