Investors are cautiously watching for signs of a trend change on the price chart of the GBP/USD currency pair as the US dollar has returned to show renewed strength.
UK employment data published in yesterday's European session looked gloomy and failed to provide support for the Pound.
The focus will be on the UK retail sales data to be published today (Friday) which will influence the movement of the Pound for the closing trade this week.
Around 70 pips of daily decline was recorded on Thursday yesterday after the price slipped lower below the 1.30000 level.
Previously, prices had shown a surge and when UK inflation data was published on Wednesday, prices hit a 1-year high of 1.30400.
However, yesterday's price drop which again moved below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the GBP/USD chart signaled a downward price trend.
Slow around the 1.29400 level for trading this morning's Asian session, the price is expected to extend the decline to the concentration level at 1.29000.
The price reaction around that will be observed for investors to get an indication of the direction of further price movements.
The increase can happen again if the US dollar moves weak again in the market with the signal of interest rate cut by the Federal Reserve (Fed).
The upside will try to retrace the resistance at 1.30000 before a move higher can occur.
Exceeding the level reached last Wednesday, the price will record the latest high again with a target of 1.31000.
