More clearly the change in the price pattern is displayed on the chart of the GBP/USD currency pair on Wednesday yesterday which declined from the 10-week high level reached.
Last Tuesday, the price managed to touch the 1.28000 level which became an important resistance zone before the price started to retreat down again.
With the continued strengthening of the US dollar, the price has re-approached the important support zone of 1.27000 with slow price movement around it in the Asian session this morning (Thursday).
The price gives a bearish signal when the movement is back below the Moving Average 50 (MA50) obstacle line towards the end of this week's trading.
Investors see the price trend is lower down by continuing the decline in subsequent sessions.
In addition, the Pound is indeed at risk of experiencing a depreciation after the central bank of England (BOE) at the day's meeting signaled a shift to a looser policy.
If the price continues to drop lower, the next concentration level expected to be reached by the price is around 1.26000.
If the decline continues, the target will shift to around 1.25000.
However, if the price bounces back from the 1.27000 zone that is currently being tested, it is likely that the MA50 barrier will be crossed before becoming an indication for the price to continue the previous bullish trend.
The resistance zone at 1.28000 will be tested again and if broken, the latest high level will be recorded and then the price is targeted to reach 1.29000.
