Investors are alert to changes in price movement patterns occurring on the chart of the GBP/USD currency pair which are influenced by the reaction to the US dollar currency.
The factor of profit taking activity by market players is seen to change the direction of the movement of the US dollar at the close of trading in November yesterday.
Although the economic data of the United States (US) was published gloomy in the New York session, the US dollar remained showing strengthening in the last session.
Thus, the price has displayed a daily decline of around 100 pips on the GBP/USD chart approaching the concentration level at 1.26000.
The drop followed a flat price movement in the 1.27000 zone when the previous price rally failed to break through the resistance.
The initial signal of a change in the bearish trend is assessed by investors when the price starts to fall below the support level of the Moving Average 50 (MA50) on the 1-hour time frame of the GBP/USD chart.
The price movement continued today (Friday) slowly in the middle of the price range between 1.27000 to 1.26000.
Investors remain cautious on December's opening trade today which is also the close for the week's trade.
If the downtrend continues, the price will drop lower past the 1.26000 level before exhibiting a more obvious bearish movement.
The next target level is at 1.25000 if the decline continues.
Meanwhile, if the increase is exhibited again after this, the price will retest the resistance level of 1.27000 which was an obstacle to the previous increase.
If the price finally manages to overcome it, the latest high level will be recorded with the potential level reached higher at 1.28000 or 1.29000.
