The price chart of the GBP/USD currency pair is seen to continue its horizontal movement in a range of 100 pips between the resistance of 1.27000 and the support of 1.26000.
The strengthening displayed by the US dollar at the beginning of yesterday's week pressured the price to go down again.
Initially, the price started trading at the opening of the Asian session yesterday (Monday) around 1.27000 which is the resistance zone tested since last week.
However, the price decline was displayed until yesterday's New York session re-approached the support level at 1.26000.
The price that has returned to move below the Moving Average 50 (MA50) obstacle line in the 1-hour time frame on the GBP/USD chart is an early warning to traders for a further drop in price that may occur.
If the price declines past the 1.26000 level, investors should be prepared for the bearish signal and expect the price to fall to a lower level.
The target could reach up to the 1.25000 level or further at around 1.24000.
However, if the price is able to show a surge back past the MA50 barrier, there is still potential for the price to continue the previous bullish trend movement.
The price increase needs to overcome the resistance of the 1.27000 zone after breaking through the MA50 barrier level to signal a trend reversal again.
For the record of the latest height level, 1.28000 is seen as the closest zone for the price to reach before the higher increase continues towards 1.29000.
