The price chart of the GBP/USD currency pair showed a decline to a recent low with mixed movements in the New York session yesterday leaving investors searching for price direction.
The Pound Sterling came under increasing pressure in late-week trading after England's central bank opted to switch to looser policy.
In line with market forecasts, the Bank of England (BOE) at its latest policy meeting yesterday lowered interest rates by 25 basis points to 5.00%.
Initially the price on the GBP/USD chart showed an initial decline in the European session until it reached a level around 1.27500.
However, after the meeting, prices were seen to show a rebound despite the BOE announcing their interest rate cut.
This situation was driven by the depreciation of the US dollar at the beginning of the New York session in addition to the pressure of the ISM survey data which showed a contraction in the manufacturing sector in the United States (US).
The price managed to bounce to the 1.28400 level before being blocked by the Moving Average 50 (MA50) line on the 1-hour time frame on the GBP/USD chart before returning to show a downward pattern again.
Towards the end of the New York session, the price has slipped lower to around 1.27300.
The price movement remains in a bearish trend and is seen getting closer to the important zone at 1.27000, but the price slowly resumed trading in the Asian session and early European session on Friday.
Investors are cautiously expecting a drastic move ahead of the US NFP jobs data report in the New York session later this evening.
If the price dives down quickly, breaking through the 1.27000 level will expect the price to record the latest low again towards the next target around 1.2600.
However, if there is a rebound until it passes the 1.28000 zone, it will be a signal for price recovery and also a trend change.
The upside is likely to head back around 1.29000 to test the zone seen as the nearest resistance for the price.
