The bullish trend movement on the chart of the GBP/USD currency pair for several weeks since the beginning of June has started to show signs of a change in direction.
In the past week, a bearish pattern started to appear after the price had reached a recent high around 1.32600.
The higher increase did not succeed in continuing, instead the price began to give signs of a bearish trend starting with a decline seen to occur below the 1.32000 zone.
The situation was driven by the recovery factor of the US dollar at the close of August trading which put pressure back on the previous excellent performance of the Pound.
In the trade towards the close of the last session last week, the price was seen to drop closer to the 1.31000 zone with the price movement remaining below the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the GBP/USD chart.
For the expectation of a further price drop, the price movement is likely to be lower below the 1.31000 zone before extending the bearish trend movement.
The target for the next decline is seen at around 1.30000 or even lower if the US dollar shows an excellent performance this week.
However, the risk of further weakening of the US dollar remains ahead of the important meeting in September that investors have been waiting for a long time.
If the price rebounds to make an increase again, the 1.32000 zone is seen as an important resistance that will determine the direction of the price's further movement.
A move higher beyond it could recapture the previous peak of 1.32600 before the price continues its rise to record a recent high.
