The price chart of the GBP/USD currency pair on Wednesday trading yesterday saw a drastic move after the price was flat since last week until the beginning of this week.
The pound suffered a sharp decline at the start of the European session yesterday as markets reacted to UK inflation data being published with a lower-than-expected figure, falling to 1.7% for September.
The perceived urgency for the central bank of England (BOE) to ease monetary policy has put pressure on Pound trading.
The price on the GBP/USD chart was seen to plunge below the 1.30000 level as soon as the data was published yesterday, but bounced back to around 1.30300.
Continuing trading in the New York session, the price gradually fell back to below the 1.30000 level in trading towards the end of the session.
A price movement below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart maintains a bearish signal.
The price movement remained flat below the 1.30000 zone in the trading of the Asian session this morning until it continued at the early opening of the European session.
The trend for the price to drop lower to the bottom expects the decline to continue towards the latest target at around 1.29000.
If the US dollar also maintains a strengthening pattern, prices will continue to be pushed to record new lows.
On the other hand, if the price rises above 1.30000 and crosses the MA50 barrier, investors will be ready for a change in the price trend.
The initial rise in price is seen to approach the nearest resistance zone that has been the focus since last week's trade which is at 1.31000.
