The bearish pattern on the chart of the GBP/USD currency pair that was clearly displayed last week was somewhat stunted when trading resumed at the beginning of this week.
Although the latest low was successfully recorded on Monday, the momentum faded and the price movement was more flat on Tuesday yesterday.
Failing to continue the bearish pattern, the price also looked to be showing no signs of a rally coming as it struggled to break through the important zone at 1.31000.
The strengthening of the US dollar last week is also more gloomy at the moment with the market cautiously awaiting the publication of the United States (US) inflation report at the end of the week which may affect price movements.
Continuing trading in the Asian session this morning (Wednesday), the price on the GBP/USD chart remained subdued around 1.31000 while testing the Moving Average 50 (MA50) barrier line on the chart's 1-hour time frame since yesterday.
Failure to cross it would expect the price to continue falling further with the latest lows being recorded.
The closest target is the 1.30000 zone which was also tested in last September's trading.
However, it is not impossible for the price to move in a different direction after this impact on the reaction to the published data or changes in the current sentiment of the market.
If a strong surge in price is seen to cross the MA50 barrier and the 1.31000 zone, a higher price increase will be expected following the trend change signal.
The price will be driven towards the 1.32000 zone before the price reaction is observed for further movement indicators.
