The latest US NFP jobs report on Friday also had a downward impact on the GBP/USD currency pair chart.
The downward pattern continued at the opening of the week, driven by the continued strengthening of the US dollar.
The strong job growth in December and the falling unemployment rate are seen to further strengthen expectations for the Federal Reserve (Fed) to slow down monetary policy easing.
This situation will continue to give the US dollar an advantage while the latest indication will be observed in the inflation data to be published this week.
If we look at the GBP/USD chart last Friday, the price tested the 1.23000 level and then plunged to reach around 1.22000.
The price increase was also blocked at the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart.
The price, which resumed trading early this week around 1.22000 at the beginning of the Asian session this morning (Monday), is seen continuing to decline to lower levels.
The price also recorded a new 2-year low of around 1.21300 until trading resumed at the beginning of the European session.
The price maintains a tendency for a further downward pattern with expectations of continued strengthening of the US dollar.
The price decline is expected to penetrate the 1.21000 zone before targeting 1.20000.
However, a change in price direction could occur with several UK economic focus data to be published this week including inflation data, economic growth and retail sales.
For expectations of a resumption of the increase, the price will approach the 1.22000 level again which is seen as the latest resistance for the price.
A continued increase will also lead to the 1.23000 zone which was the area where the price started to plunge last Friday.
