The bearish pattern was again exhibited on the chart movement of the GBP/USD currency pair yesterday.
The high price level reached last Friday seems to have failed to be overcome after the price increase was displayed earlier this week.
The price that hovered at a high level around 1.27650 in the Asian session yesterday then made a decline until it returned to the concentration level of 1.27000.
As expected there will be a reaction in that important zone, the price did not continue to break down but instead leveled above it until trading resumed in the Asian session this morning (Wednesday).
However, the price movement that has started to be below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the GBP/USD chart gives an early signal for the bearish movement to begin.
If the US dollar continues its positive performance today, a further decline in price below the 1.27000 level is likely.
Next, the price drop will continue to reach the target up to the concentration zone of 1.26000.
However, ahead of the release of United States (US) inflation data on Thursday, any possibility can happen in the market.
The price could also jump higher again from the current level of 1.27000 if the US dollar weakens again.
Breaking through the MA50 barrier will push the rise to continue towards resistance at the 1.27700 level.
Next, the 1.28000 zone will be an important focus if the price still makes an increase to test the resistance zone at the end of December.
