The bearish pattern on the chart of the GBP/USD currency pair did not continue on Tuesday yesterday, instead the price recovered slightly making gains.
If seen last Monday, the price made a daily plunge of around 100 pips reaching the level of 1.25400 to record the lowest level for the 7-week trading period.
However, the price showed an increase of around 40 pips yesterday when there was a change in the strength of the US dollar currency.
The US dollar, which strengthened at the beginning of the week, weakened again as the market reacted to the economic data published by the United States (US).
Today's focus will be on the ADP jobs report which measures the US private employment sector which will provide an early indication of the NFP jobs report at the end of the week.
The reaction to the data is expected to drive the movement of the US dollar as well as determine the direction of further price movements on the GBP/USD chart.
Price movement was slow in the Asian session this morning (Wednesday) around 1.25800 which tested the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the chart.
Despite showing an increase, the price is seen to be still moving in a bearish trend with a tendency for a decline to still occur.
If the decline continues, the level reached at the beginning of the week is likely to be exceeded before the price targets the 1.25000 zone to test the support.
The decline lower could continue if the zone is broken and the price will continue to record recent lows again this week.
However, if there is a rise again, the 1.26000 level is seen to be tested as an initial resistance for the price before giving a clearer bullish signal.
A further increase in price if continued will aim to reach the concentration level at 1.27000.
