Failing to maintain a signal for a change in the upward trend, the price on the chart of the GBP/USD currency pair again showed a decline at the beginning of the week yesterday.
Investors are certainly aware of the risks to the Pound currency trade after a drop in UK inflation figures published last week is seen to prompt the central bank of England (BOE) to continue easing monetary policy.
However, the drop in prices in the New York session yesterday was seen to be driven by the re-strengthening of the US dollar currency which continued its trading pattern of 3 consecutive weeks before.
Observed on the GBP/USD chart, the price bounced at the end of last week's trade but has fallen back below the 1.30000 zone in yesterday's New York session.
A price move back below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart signals further downside risk ahead.
Continuing trading in this morning's Asian session, prices slowed below 1.30000 with a tendency to decline lower to continue to overcome last week's trading levels.
The price drop will record the latest low towards the target at the 1.29000 concentration zone.
However, if a strong rise is displayed above the 1.30000 level, the signal for a bullish price movement will be seen again.
The price increase is about to return to the resistance level of 1.31000 which was also tested last week but still failed to break through.
