As expected by analysts, the price movement on the chart of the GBP/USD currency pair has reached the 1.31000 zone as the bearish pattern continued yesterday.
Prices reacted when the ISM survey data of the United States (US) manufacturing sector was published saw a slight strengthening of the US dollar currency.
The initial increase exhibited at the beginning of the New York session did not succeed in continuing the price when it was limited by the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart which remained signaling a bearish movement.
However, the price reached the 1.31000 zone to record the lowest level which however did not extend the decline lower.
Instead, the flat price tested the zone until trading continued into the Asian session this morning (Wednesday).
The pace of price movement is seen to remain cautious as investors await some important data that will assess the employment sector in the US this week.
If the published data supports the strengthening of the US dollar, the price will be pushed lower below the 1.31000 zone to continue the previous bearish movement.
The continuation of the price drop is expected to lead to the next concentration zone around 1.30000.
On the other hand, if the price manages to stay above the 1.31000 zone, the price direction change signal will be observed with the movement above the MA50 line again becoming an early sign.
A move higher if it occurs will target the 1.32000 zone as the nearest resistance to be tested.
