Price movements remain trending on the GBP/USD currency pair chart so overnight as expected by the market.
There are still no changes to the previous price guidance which was influenced by the decision of the central bank meeting last week.
The pound remained weak, while the US dollar managed to maintain its strength in the New York session even though data on user confidence and new home sales in the United States (US) recorded gloomy readings.
As we get closer to the end of September, investors will be more alert waiting for the publication of data that is expected to have a greater impact on the US dollar, namely Gross Domestic Output (KDNK) data and US PCE inflation data.
If the reading remains positive, the continued strength of the US dollar will drag prices down to new lows again.
After paying attention, the price on the GBP/USD chart continues to edge lower past the support level tested previously at 1.22000.
Even though it was not very aggressive, the price maintained a downward tempo for several days with movements still below the 50 Moving Average (MA50) resistance on the 1 hour time frame on the chart.
With the tendency for prices to continue this downward trend, the 1.21000 level is seen as a target destination for the next price test.
If prices break lower, the target will shift to around 1.2000 as well after the last time prices hit that level since last March.
However, it is not impossible for the price to also display an upward trend that changes the direction of the previous trend movement.
If the price exceeds the 1.22000 level and the MA50 barrier, this could be a sign that the price is starting to make an increase to the previous higher level.
The increase is seen to return to the 1.23000 level or the 1.24000 support zone which shows an important reaction to last week's trading.
