A change in price direction occurred on the chart of the GBP/USD currency pair in yesterday's New York trading session when the US dollar returned to display a recovery.
The situation is driven by the release of the United States (US) consumer confidence survey data with encouraging readings and also increasing the expected tendency of the Federal Reserve (Fed) to maintain their tight monetary policy.
Meanwhile, investors have also braced for a further fall in the Pound following a warning from a dovish signal by the central bank of England (BOE) at its day-long policy meeting.
However, in the European session yesterday, the price still managed to show an increase until it touched the important level of 1.28000.
However, as expected by analysts, the price reaction occurred in that zone when the price as soon as it touched the 1.28000 level then also reversed its direction to make a decrease.
Towards the end of the New York session, the price dropped near the 1-hour Moving Average 50 (MA50) line on the GBP/USD chart around 1.27600.
The decline in prices continued slowly in the Asian session this morning (Wednesday) but gave a bearish signal when prices moved below the MA50 line.
The decline is expected to continue in the following sessions with the 1.27000 zone which was the previous price support to be tested again.
If it breaks down, further price decline will continue towards the next concentration level which is around 1.26000.
On the other hand if the price manages to bounce back past the MA50 barrier, the 1.28000 zone will be tested again like yesterday.
Next, after the price continues to rise past the resistance, the latest 10-week high will be recorded with the target for the price to reach up to 1.29000.
