Price movements on the chart of the GBP/USD currency pair appear to be still flat at the beginning of the week above the 1.29000 level.
The lack of focus economic data earlier in the week failed to drive a clearer direction for key price movements with investors taking a cautious approach.
The market is predicted to be lively again on Wednesday with the release of UK and US (US) manufacturing and service sector PMI data which will influence the Pound and the US dollar.
The pound suffered a dip in late trade last week as UK retail sales data for June contracted more sharply than forecast.
Meanwhile, the US dollar has begun to show recovery in a somewhat uncertain market environment.
Price movement slowed below the Moving Average 50 (MA50) barrier line on the 1-hour timeframe on the GBP/USD chart yesterday, indicating a bearish signal.
The price managed to stay above the MA50 line in the Asian trading session this morning (Tuesday), but the slow price movement is not enough to convince investors to determine the trend change.
If prices manage to rise strongly after this, investors will be more optimistic and expect price increases to continue.
The nearest resistance to be tested by the price is at the 1.30000 level before a move higher will re-reach last week's peak around 1.30400.
However, if the price breaks through the current support level of 1.29000, a further decline will be expected with the bearish trend indicator.
The price risks hitting again around 1.28000 or lower depending on the current market reaction.
