The bearish price movement pattern continued on the chart of the GBP/USD currency pair until the close of trading at the end of last week.
In the last session, the price clearly continued the decline after in the previous few sessions the price tried to show a moderate recovery.
The price jump was driven by the United States (US) NFP employment report in the New York session last Friday as the components of the report came in with strong figures and strengthened the US dollar.
The pound failed to withstand the US dollar's strengthening urge from the beginning of the week again when market sentiments at risk of being triggered by the Iran-Israel war gave the US dollar an advantage as a safe-haven currency.
Thus, the price on the chart of the GBP/USD currency pair has been seen retreating back down after successfully reaching the highest level of 30 months before.
On Friday, there was an increase shown by the price, but after being around 1.31700, the price started to plunge following the market reaction to the published NFP data.
The price plunged past the 1.31000 level and hit a fresh 3-week low at 1.30700 before rebounding to close the trade above 1.31000.
Price movement remained hovering slowly around the zone at the opening of the Asian session this morning (Monday) with a still bearish signal seeing prices below the Moving Average 50 (MA50) barrier line on the 1-hour timeframe on the GBP/USD chart.
Lower declines are expected to continue if prices break below 1.31000 with recent lows set for the week.
The target for further price decline is towards 1.30000 and further lower at 1.29000.
However, if the price increase manages to pass the 1.31700-1.32000 resistance zone, the price shows the potential to return to show a rising pattern again.
The upside is likely to reach back to the previous focus zone at 1.33000 before heading towards the 1.34000 resistance zone tested at the end of September trading.
