Last week, price movements on the chart of the GBP/USD currency pair saw the closing price at the end of the week being lower than the opening at the beginning of the week.
At first, the price showed a bullish pattern but the situation changed when the decline started towards the end of the week.
The change in price patterns was driven by the strengthening factor of the US dollar following the inflation data of the United States (US) published on Thursday.
An initial high was reached at 1.22300, but the price has plunged to a weekly low recorded at around 1.21220.
A clear signal of a change in the bearish trend last week when the price moved below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart until trading continued at the opening earlier this week.
The price is hovering slowly around 1.21500 in the Asian session this morning (Monday) with the expectation that the downward trend will continue.
A further decline is seen to target the 1.21000 level for the price to test the focus zone and the reaction displayed will be an indication of the next movement.
If broken, the support level at 1.20500 will wait to be tested before the target will move to the 1.20000 zone.
On the other hand, if the price increase occurs, the 1.22000 level becomes an important point to test and the price will try to break through the MA50 barrier.
If it does, the upside could reach around 1.23000 again with a signal for a bullish trend reversal being reassessed.
