Last Friday the daily plunge was recorded around 150 pips on the chart of the GBP/USD currency pair, on Monday the opening of the beginning of the week yesterday and the price continued its decline to the latest low.
The daily decline of around 120 pips yesterday has already crossed the previous price support level at 1.26000 and reached around 1.25200 at the same time recording the latest 8-week low.
This situation is expected to continue as the US dollar still managed to maintain its strength after the positive momentum on the reaction to the NFP report published last Friday.
Price movement that remains below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart still suggests that the bearish trend will continue.
The price hovered slowly around 1.25300 at the opening of the Asian session this morning (Tuesday) but is expected to continue the downward pattern in the following sessions.
The 1.25000 level is seen to be the target to be tested after the last time the price touched that level was in mid-December last year.
If the decline below 1.25000 is continued, the next target for the price is 1.24000 while recording the latest 12-week low.
However, if the price does not continue to decline, instead showing an increase again, the 1.26000 level will be the focus for the price to test the SBR (support become resistance) zone.
If it breaks through that zone and the price also breaks through the MA50 barrier, a higher rise will be expected to continue to around 1.27000.
