A bearish movement pattern has been displayed on the chart of the GBP/USD currency pair for trading over the past week as the US dollar managed to show a recovery in its performance.
The US dollar managed to strengthen again against the Pound, but this week will be more critical for both currencies.
This is because the results of the Bank of England (BOE) policy meeting as well as the FOMC meeting will be in focus this week.
The market will await a clearer indication of interest rate cuts by the Federal Reserve (Fed) after evaluating the latest data that has been published.
The decision of the central bank will affect the price movement pattern on the GBP/USD chart and it is expected that volatile price fluctuations will be shown.
Last Friday, the price moved flat above the 1.27300 level after a significant decline the previous day from the 1.28000 zone.
The bearish price trend continues with the price remaining below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart.
Continuing trading at the opening of the week, prices are still slow in the Asian session around the 1.27300 level.
The price is expected to approach the 1.27000 level to test the RBS (resistance become support) zone if the downward pattern of last week continues.
For a lower decline beyond that zone, the price will target the next concentration level which is around 1.26000.
However, if on the other hand the price shows a strong rebound, the MA50 barrier will be crossed before the price tests the resistance at the 1.28000 zone.
A further move higher will see the 1.29000 high zone once again become the target for price testing.
