After reaching a recent 1-year high, a bearish pattern was again displayed on the chart of the GBP/USD currency pair at the end of last week.
The pound was depressed as UK retail sales data published on Friday showed a contraction for June of -1.2% was lower than forecasts of -0.6%.
Coupled with the recovery situation of the US dollar towards the end of the week, the price on the GBP/USD chart is being pressured down.
If last Wednesday the price reached the latest high at 1.30400, the decline occurred again until it reached the 1.2900 level which is the price concentration zone.
The price reaction is observed when the price bounces slightly once it touches that level in the closing trading sessions of the week.
Slow price movement hovered in the 1.29000 zone until the opening of the Asian session this morning with investors assessing the bearish signal of the price being below the Moving Average (MA50) barrier on the 1-hour time frame of the chart.
If the price decline pattern continues after this, the price will break through the support at the 1.29000 zone before hitting a lower level.
The target is to head back around 1.28000 with an indication of a more clear bearish price trend taking place.
However, if the price manages to bounce back up from the 1.29000 zone, the MA50 barrier is also likely to be crossed before the price heads back to 1.3000 as the nearest resistance to be tested.
After a move higher, last week's 1.30400 level will be challenged before the price makes a new record high.
