Signals of a trend change were detected on the price chart of the GBP/USD currency pair during the continuing trade earlier this week.
However, investors still need to keep an eye on additional indicators following the volatile movement at the close of trading last week following the impact of the United States (US) NFP employment data report that has been published.
Initially, the US dollar weakened first before showing a strengthening towards the end of the last session of the week.
On the GBP/USD chart, the price hovering around the 1.31700 level has surged past 1.32000 before reaching a high near 1.32400.
However, the price then plunged 120 pips almost touching 1.31000 before rebounding slightly and slowly closing the trade around 1.31300.
The slow price movement in the vicinity continued the opening trade early this morning (Monday) but gave a bearish signal when seen to be below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart.
The US dollar is seen to continue strengthening with last week's momentum, expecting a drop in price to occur beyond the 1.31000 support.
An increasingly clear bearish signal will push the price lower with the target moving to 1.30000.
However, if the price jumps back past the MA50 barrier, the resistance that will be tested by the price is seen at the 1.32000 zone.
Next, for a higher rise if it continues, the price will challenge the height reached during the last NFP reaction before heading towards the 1.33000 concentration zone.
As an initial preparation, investors need to be alert ahead of the release of UK employment and economic growth data, as well as US inflation data that will influence the Pound and the US dollar.
