The movement on the chart of the GBP/USD currency pair at the opening of the early week yesterday was seen to continue the bearish pattern when the price dropped lower.
The situation comes as no surprise as the pound has been trading under pressure this week with expectations that the Bank of England (BOE) will cut interest rates at its policy meeting on Thursday.
Meanwhile, the US dollar currency which showed strengthening at the beginning of the week is also seen to be at risk of volatile movements ahead of the FOMC meeting.
However, for now the movement of the GBP/USD chart remains in a bearish trend with the price being below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame.
The continued decline in the European session yesterday has almost touched the 1.28000 level but the price bounced back to show a modest increase in price throughout the New York session.
The price continued to trade slowly in the Asian session today (Tuesday) around the 1.28500 level with the MA50 line as an obstacle that restrains the price from continuing to rise.
If the MA50 barrier fails to be passed, the price is likely to 'head down' and fall back towards the 1.28000 zone which is seen as a support zone for the price.
Breaking lower will record the latest 4-week low before the price is expected to target around 1.27000.
However, if the price manages to bounce back above the MA50 barrier, the price will face resistance at the 1.29000 level to break through.
Moving to a higher level, the initial signal for a change in the bullish trend will drive the price to increase more positively before heading to the 1.30000 level again..
