The price movement on the chart of the GBP/USD currency pair at the opening of the early week yesterday was seen to still maintain a downward pattern despite the price increase in the European session.
Following the United States (US) retail sales data published with a good reading in the New York session, has supported the strengthening of the US dollar while putting pressure on the Pound.
It can be observed that the price initially managed to make an increase up to the level of 1.25000, but the higher increase was not able to continue before the price retreated back down.
The price was also seen testing the Moving Average 50 (MA50) barrier line on the 1-hour timeframe on the GBP/USD chart and failed to break through it, signaling that the bearish trend will continue.
Investors will be keeping an eye on the UK jobs data report to be published at the start of the European session today (Tuesday) which is expected to influence the movement of the Pound.
In this morning's Asian session, the price drop continued to see the price hovering at last week's low around 1.24300.
The bearish trend is expected to continue for the next price to test the 1.24000 zone and the price reaction around that will be observed.
If it breaks through, the decline will continue further with the price expected to reach 1.23000 for the latest record low of the year.
Meanwhile, if the price bounces back up, once again the 1.25000 level is expected to be tested as a resistance during price formation.
Breaking through that resistance as well as the MA50 barrier would suggest a move higher after a bullish trend reversal signal.
