The bearish pattern was shown again on the chart of the GBP/USD currency pair on Wednesday yesterday as the gains at the beginning of the week failed to continue.
After the initial signal of the strengthening of the US dollar that erupted last Tuesday, analysts had expected the US dollar to move positively in the market supported by statements that remained hawkish by members of the Federal Reserve (Fed) on their monetary policy.
Now the next indication will focus on the United States (US) PCE price index data on Friday, but investors will first pay attention to the US economic growth data that will be published in the New York session tonight.
The price increase on the GBP/USD chart at the beginning of the week stopped at the 1.27000 level but did not manage to rise higher beyond it.
After leveling off for a while, the price began to show a decline until yesterday's New York session reached a low of 1.26200.
The price action shows a bearish signal that is below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the GBP/USD chart.
Slow price movement continues trading in the Asian session this morning (Thursday), and is seen approaching the focus support zone at 1.26000.
If the US dollar manages to maintain its strengthening, a further decline in price is expected to cross 1.26000 before recording the latest lows.
The next price drop target will shift to around 1.25000 which is also seen as a price focus.
Meanwhile, for price increases again, the resistance is at the MA50 barrier and the 1.27000 level that was tested at the beginning of the week.
If the following barriers are successfully passed, the price has the potential to rise higher to return to the previous concentration level around 1.28000.
