The price movement pattern on the chart of the GBP/USD currency pair began to steal the attention of investors in the Asian session this morning (Tuesday) compared to the opening movement of the beginning of yesterday's week which was slow due to the public holiday in the United States (US) which made the US dollar flat.
The US dollar began to strengthen this morning driven by risk-off market sentiment as concerns about geopolitical tensions in the Middle East continued to surround.
Today investors will be careful for the movement of the Pound which will be influenced by the UK employment data report in the European session shortly.
In this session of Asia, the Pound experienced a decline pressured by the strengthening of the US dollar but the situation could change in the following sessions.
Examining the GBP/USD chart, the price moved in a range of around 50 pips yesterday with a slow decline pattern observed.
Price gains are also seen to be blocked by the Moving Average 50 (MA50) line on the 1-hour time frame of the chart, signaling a bearish trend.
The decline continued at the opening of the Asian session this morning, seeing the price reach a concentration level of 1.27000.
This is an important support zone that was tested several times during last week's trading, but the price failed to break through.
If the price drops lower below that level, a more obvious bearish price movement will be shown.
Further decline is expected to reach the concentration zone at 1.26000.
However, if this week also the price shows a rebound from 1.27000, the price increase will try to cross the MA50 barrier before signaling a trend change again.
Next, the 1.28000 zone will be the target that will be aimed at the successful price increase pattern.
