Signals of bearish movement were observed on the chart of the GBP/USD currency pair on Thursday yesterday with a decline in price.
The price has made a decline again after failing to continue the rising pattern that started from the beginning of the week.
This is due to the recovery of the US dollar to reduce the losses experienced before.
In addition, the Pound fell after the market digested the results of the Bank of England (BOE) policy meeting yesterday with interest rates being maintained at 5.25%.
The dovish tone continued by the BOE and the market is now expecting an interest rate cut at the August meeting.
Around 70 pips of daily decline was recorded on Thursday yesterday which saw the price drop to an early week low of around 1.26600.
A bearish signal for investors as the decline is seen moving back below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the GBP/USD chart.
If the momentum is maintained, the price is likely to continue its decline further towards the 1.26000 target.
On the other hand if the price increase occurs, the concentration level seen as the nearest resistance is at 1.27000 to test the price.
A higher move will try to challenge the level reached last Wednesday around 1.27400 before heading towards the 1.28000 concentration zone.
Today's focus is on the UK and US manufacturing and services PMI data reports which will influence the movement of the Pound and the US dollar.
