The bearish pattern was again displayed on the chart of the GBP/USD currency pair for the opening of the early trading of the week yesterday.
This is a slightly different situation compared to the closing of the last session last week which saw the price jump past the 1.26000 level.
The movement of the US dollar was also slow yesterday, but slightly strengthened, as the United States (US) market was on holiday in conjunction with the celebration of President's Day.
On the GBP/USD chart, investors are beginning to be cautious as the price movement has shown early signs of a possible price drop.
This is due to the decrease that was displayed yesterday again seeing the price decrease below the 1.26000 level and also below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart.
The price continued to trade slowly in the Asian session this morning (Tuesday) below the 1.26000 level with the expected price decrease to be shown in the following sessions.
The target for a lower drop is to test last week's level around 1.25300 before heading to the 1.25000 support zone while also recording the latest 10-week low.
On the other hand, if the price makes a rebound above the 1.26000 level and crosses the MA50 barrier, this could be a bullish signal for the price to continue moving higher.
The price will try to overcome the height reached yesterday around 1.26300 before going to record the latest high level this week.
The next upside will target last week's highs or the concentration zone at 1.27000.
