Price movement on the GBP/USD currency pair chart last week managed to reach a 3-week high as the reaction to the US (US) NFP employment data report was released.
The price decline only occurred on Monday at the beginning of the week before the gradual increase continued until the end of the week.
In the last trading session of the week, the price increase reached the 1.28000 level when the initial reaction to the NFP report was released.
However, towards the end of the trading session, the US dollar, which managed to strengthen again, has again pressured the price down.
The 1.28000 zone became an important resistance before the price gave a sign to continue the downward pattern at the beginning of this week.
The price slowed down around 1.27400 at the opening of the Asian session this morning before moving down below the Moving Average 50 (MA50) line on the 1-hour time frame on the GBP/USD chart, which is a bearish signal.
The price decline, if extended, is seen testing the 1.27000 support before the price reaction around that will provide further direction.
A sharp plunge down would expect the price to approach around 1.26000.
However, if it reverses direction to surge back up, the 1.28000 resistance zone will be tested as in last week's close.
Breaking through that zone would push the price to a fresh 4-week high with a target at 1.29000.
