The Pound's recovery at the beginning of the week stalled as the US dollar regained its strengthening momentum and also put pressure on other currencies.
The US dollar strengthened significantly in the New York session yesterday following the United States (US) economic data including the ISM service sector survey and JOLTS employment, each of which came with encouraging figures.
This has changed the direction of the US dollar's movement which had weakened at the beginning of the week.
Early signals for a change in direction were also detected on the GBP/USD currency pair chart which resumed trading today (Wednesday).
After a strong surge displayed at the beginning of the week above the 1.25000 level, the price is still seen to continue climbing to a slightly higher level reaching around 1.25700.
However, the price failed to reach the target at the 1.26000 zone before being seen to plunge again to fall below 1.25000 in the New York session yesterday.
The price falling below the Moving Average 50 (MA50) line on the 1-hour chart is a bearish signal with price movement remaining flat below 1.25000 until trading resumes in the Asian session this morning.
With the US dollar strengthening again, prices could fall lower towards the nearest target at 1.24000.
If that level is also broken, prices will surpass the level reached last week before reaching a new low of 1.23000.
However, if it makes a rebound above the 1.25000 zone and breaks through the MA50 barrier, it will be an early sign for the bullish price pattern to be displayed again.
After overcoming yesterday's level, prices will test the resistance at 1.26000 which has been the focus in previous weeks.
