The bearish pattern continued on the chart of the GBP/USD currency pair as it ended trading at the end of last week.
The US dollar maintained its strength while the Pound was gloomy as the market reacted to the report of published manufacturing and services PMI data.
The United States (US) PMI data was excellent for June with a number that exceeded the forecast while the UK PMI was lackluster, but the number was still above the 50 point level.
The GBP/USD chart saw a drop to a fresh 5-week low after the price failed to hold above the 1.27000 level.
Last Friday's drop reached around 1.26200 with a bearish price signal that was below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart.
If the US dollar maintains its positive momentum this week, further declines in prices will occur.
The support zone at 1.26000 is seen as the closest focus for the price, besides the latest lows will be recorded again this week.
A further decline that continues lower beyond that zone will change the next target at around 1.25000.
However, if the price returns to show a rise above the MA50 barrier, it is likely that the price recovery pattern will show again.
The initial resistance for the price increase is at the 1.27000 level before a higher move is expected after crossing it.
The price's higher target will be at the 1.28000 zone which was previously an important resistance tested by the price.
