The price movement on the chart of the GBP/USD currency pair is finally seen to have slipped out of the horizontal zone in the previous 100 pips range of 1.27000-1.26000.
The price, which continued its decline for the third day in a row, broke through the 1.26000 support level and hit a recent low around 1.25500 at the end of the New York session.
This situation is driven by the strengthening of the US dollar which was still successfully maintained until yesterday despite the United States (US) ADP employment data being published with a gloomy reading.
Investors however remain cautious ahead of the bigger risk which is the US NFP jobs data report on Friday.
Analysts warned of a weak reading of the report as the US labor market is currently under pressure as the central bank continues to tighten monetary policy.
The GBP/USD price movement is seen to still be showing a bearish trend that is moving below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the chart.
If the momentum is maintained, the price is seen to continue its decline towards the target at 1.25000 and it is likely that there will be an interesting reaction displayed around that area.
If the breakout price is lower, the bearish trend will continue with the target moving to the next concentration level at 1.24000.
However, if the situation changes to see the price bounce back, resistance is at the 1.26000 level and also the MA50 to overcome before giving an indication for a change in direction.
The continued increase will expect the 1.27000 level to be the target to be tested, which is still a thick resistance that failed to break through last week.
