The chart of the GBP/USD currency pair showed a drop to new lows at the early opening of the week as the US dollar maintained its positive momentum from last week.
While the Pound is trading under pressure this week ahead of some important economic data to be published.
In the European session, the UK jobs report will soon be published before the UK economic growth data will be in focus on Wednesday.
The main focus of the market is on the inflation data of the United States (US) which will have a big impact on the US dollar, becoming the main indicator for the Federal Reserve (Fed) ahead of the approaching FOMC meeting.
On the GBP/USD chart, the price plunge after the NFP report last Friday triggered a bearish signal with the price starting to move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame.
The price drop continued on Monday yesterday, passing the current support zone at 1.31000, the price reached a new low around 1.30700 in the New York session yesterday.
A slow price rebound occurs but is limited at the 1.31000 level which is seen to be changing its function as a new resistance for the price.
Slow movement was seen in the Asian session this morning (Tuesday) but still in a downward trend with the expectation that the latest lows will be recorded again today.
The target is for the price to reach the 1.3000 concentration zone and the price reaction around it will be observed for further direction.
An increase in price if it crosses back to 1.31000 will increase the potential for a higher jump again.
The price could reach back to the 1.32000 target after last week's trade failed to hold above that zone.
