The bearishness occurred again on the chart of the GBP/USD currency pair at the beginning of the week yesterday, reducing some of the gains made at the close of last week.
On Friday, prices recorded a daily increase of up to 200 pips following the reaction to the publication of the US NFP employment report declined.
A decline of around 80 pips was exhibited yesterday after the initial rally had reached a recent high of around 1.24200.
The price has dropped back below the 1.24000 zone and closed the New York trading session around the 1.23400 level.
Slow price movement in the Asian session this morning (Tuesday) as prices are seen testing the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart which may indicate further price movement.
The price drop is seen to continue approaching the 1.23000 zone to also react before continuing the movement.
If the US dollar still manages to maintain yesterday's strengthening, the price is likely to be pressured to fall lower below the 1.23000 zone.
After the bearish signal is identified, the price is expected to decline towards the previous concentration level around 1.22000.
But if the price manages to show a surge again, the 1.24000 zone will be tested again as a resistance that needs to be broken.
If it breaks through to a higher level, the price will target 1.25000 to record the latest high level again.
