The price chart of the GBP/USD currency pair saw an overnight drop to a new 3-month low.
It turns out that the Pound this week continues to fail to withstand the strengthening of the US dollar despite attempts to strengthen its value after the Bank of England (BOE) meeting last week.
In yesterday's European session, the UK jobs report was published and has influenced further declines for the Pound currency.
This is due to the focus on UK unemployment rate data which rose to 4.3% in September from 4.0% reading the previous month, which also beat the forecast of 4.1%.
Investors are now cautiously awaiting the inflation data of the United States (US) to be published in the New York session later tonight.
However, with the expectation of the latest inflation figures that are likely to increase again and will encourage the strengthening of the US dollar, prices may drop lower.
The daily decline on Tuesday yesterday recorded around 150 pips which surpassed last week's lowest trading level at around 1.28300.
The decline that lasted into the New York session was seen to reach 1.27200 before the flat price around it continued until trading into the Asian session this Wednesday morning.
A price movement that remains below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the GBP/USD chart remains a signal for a bearish trend for the price.
Further declines are expected to test the 1.27000 support zone before breaking lower to record new lows.
The target will move to the next concentration zone at 1.26000.
However, if the price appears to make an increase past 1.28000 and the MA50 barrier, an early signal for a trend change will be triggered.
The upside will begin targeting 1.29000 before continuing higher gains thereafter.
