The price movement on the chart of the GBP/USD currency pair is starting to show fading momentum when the rising pattern displayed from the beginning of the week has started to slow down.
Prices are seen to be flat in the 1.31000 zone environment with the currency reaction on Thursday's trading yesterday to the release of manufacturing and services PMI data in the UK and the United States (US).
The Pound's performance was positive in the European session yesterday when the UK PMI data came in with an encouraging reading for August, but the US dollar stood out in the next session.
The price that reached the latest high at 1.31300 is starting to sink back below the 1.31000 level.
Prices are still hovering around the zone with a slow rising pattern displayed in the Asian session this morning (Friday) with investor vigilance awaiting the Jackson Hole symposium event which will start later tonight.
The price movement, however, is still moving above the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart, which indicates a bullish trend signal.
If the increase still manages to continue in the final sessions for this week's trading, the expectation is for the price to go to the level of 1.32000 to record the latest high level.
But the price must first overcome the peak level reached in July 2023 at around 1.31400.
Meanwhile, if the price starts to fall after failing to hold above the 1.31000 zone, investors will take the warning as an early indication of a change in the bearish trend about to begin.
The target for the initial decline is to around 1.30000 before an indication of the direction of further movement will be observed.
