The Pound continued to lose ground in Tuesday's trade yesterday when it fell to a new 4-week low against the US dollar.
Risky market sentiment fueled the recovery of the US dollar as a safe-haven, but the king of currencies was again weak in New York session trading.
Price movements on the chart of the GBP/USD currency pair continued to move lower yesterday after the central bank of England (BOE) initiated its interest rate cuts at last week's meeting.
The price hovering around the 1.28000 zone in the Asian session yesterday, after leveling off at the beginning of the week, has shown a plunge to slightly pass the 1.27000 support zone.
But the momentum of the decline started to fade, seeing the price moving horizontally until the end of the New York session ended at around 1.27000.
Price movement remained sluggish in the same zone in the Asian session this morning and showed a slight upward trend.
The trend remains bearish with the price movement still below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the GBP/USD chart.
If the US dollar moves better against the Pound, the price will be pressured to fall lower below the 1.27000 zone and record the latest low again.
The target for the downside is towards 1.26000 to test the support level.
However, if the price surge crosses the MA50 barrier, the price increase will retest the resistance at the 1.28000 zone.
If it manages to pass to a higher level, the trend change signal will encourage the price to rise to the next concentration level at 1.29000.
