The price movement on the chart of the GBP/USD currency pair is seen to have survived a more severe fall.
This is due to the release of PMI data reports for the UK manufacturing and services sectors in the European session yesterday which saw good readings for both sectors in July.
The pound managed to show a positive strengthening in the early trade of the session but it is seen that it has not shown a convincing reaction.
Meanwhile, the same data for the United States (US) published in the New York session showed a mixed reading with the services sector strong while manufacturing experienced contraction for the first time this year.
The US dollar weakened for a while but showed recovery towards the end of the session.
If you look at the GBP/USD chart, the price is still hovering in the 1.29000 zone since the beginning of the week until yesterday.
The price increase only approached the 1.29400 level before retreating back down to 1.29000 again.
The price hovering again below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the chart signals that the bearish movement will continue.
If the price plunges more significantly below the 1.29000 zone, it will give a clearer signal to investors to expect a price drop towards lower levels.
The target is seen at the 1.28000 zone to test the price and the reaction around it will be observed as an indication of the direction of further movement.
On the other hand, if there is a strong surge above 1.29000, the price will likely try to reach the 1.3000 level again before breaking to higher levels.
Next, the height reached last week around 1.30400 will be challenged for the price to break the highest 1-year record.
