Investors are alert to early indications of a trend change on the GBP/USD currency pair chart this week.
In contrast to last week's continuous uptrend, prices started to show signs of a decline after the bullish momentum failed to sustain.
On Monday, prices still managed to continue their ascent to the latest 4-week high, but the decline began and continued on Tuesday yesterday driven by the reaction to Federal Reserve (Fed) Chairman Jerome Powell's speech in front of Congress.
The signal to maintain the existing policy is seen to support the US dollar to move stably even though the strengthening is not very visible.
The price movement on the GBP/USD chart that starts below the Moving Average 50 (MA50) barrier line on the 1-hour time frame triggers a bearish signal.
After breaking below the 1.28000 level, the price leveled off slowly around 1.27800 in Asian session trading this morning (Wednesday).
A lower decline is expected to continue after this to continue yesterday's movement pattern.
If extended lower, the price could possibly reach up to around 1.27000 again to test the RBS (resistance become support) zone.
However, if the price manages to bounce back past the MA50 barrier and the 1.28000 zone, the bullish price will try to once again reach the high level at the beginning of the week.
Next, a higher climb to record the latest high level is seen to aim for 1.29000 as the closest concentration of the price.
