The bullish pattern on the chart of the GBP/USD currency pair failed to continue on Thursday yesterday as the price pressed down again.
On Wednesday, prices managed to soar to a new 13-week record high of 1.28600 as the reaction to the published United States (US) inflation data.
However, the decline occurred again when the US dollar strengthened after the market digested the results of the FOMC meeting with a hawkish tone maintained by Federal Reserve (Fed) Chairman Jerome Powell's speech early Thursday morning.
In yesterday's New York session, the strengthening of the US dollar continued, seeing the price on the GBP/USD chart reach 1.27400.
The decline that also crossed the Moving Average 50 (MA50) line on the 1-hour time frame on the chart has indicated a bearish movement for the price.
The price hovered around 1.27500 in the trading session of Asia this morning (Friday) but the direction of movement is expected to be clearer in the following sessions.
The expectation of a lower decline will continue to continue yesterday's momentum with a focused focus on the 1.27000 support zone.
The zone has successfully prevented prices from falling lower for the past few weeks.
If it breaks through, a more clear bearish signal, the price will push the decline to reach around 1.26000.
However, if the price bounces back past the MA50 barrier, the next resistance is at the 1.28000 zone to be tested.
If the price manages to continue climbing higher, the 1.28600 level reached last Wednesday will be a target to be challenged before the continued increase is expected to reach the 1.29000 zone.
