Investors assessed the tendency of bearish movement for the price on the GBP/USD currency pair chart when the support level at 1.26000 was tested yesterday.
The US dollar looked strong in the New York session even though the JOLTS jobs data came in at a slower pace than forecast.
The ISM survey data of the United States (US) service sector also recorded increased readings, seen as supporting the US dollar to continue strengthening from the beginning of the week.
Since last week the price on the GBP/USD chart is seen moving horizontally in a range of 100 pips below the resistance level of 1.27000 and above the support level of 1.26000.
Yesterday's price movement remained below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart, making investors cautious as a bearish signal.
The price decline occurred in the New York session and the price was seen to slightly break through the support level of 1.26000 and the price was flat below it until the close of the session.
Continuing in the Asian trading session this morning (Wednesday), a slow rise is shown for the price to be back above the 1.26000 level but still remains below the MA50 barrier.
It is likely that the price could drop back below 1.26000 to continue the decline lower which would be a bearish price signal and a warning for further declines.
The target is to reach back around 1.25000 or if the breakout price is lower, the 1.24000 level will be the focus for the price to target.
On the other hand, if a surge is displayed again, the price that breaks through the MA50 barrier again will expect a rise towards 1.27000 to retest the resistance zone.
If it manages to break through higher, the price will continue the previous bullish trend while recording the latest 4-month high.
