The GBP/USD currency pair price chart extended its rise to new highs yesterday after slightly surpassing the levels reached at the end of last week.
The price has bounced from the level around 1.24300 to surpass the resistance level of 1.25000 and reached a new 3-week high around 1.25200.
However, the price fell back below 1.25000 in the New York session yesterday as the US dollar began to show a recovery from the previous session's decline.
The strengthening of the US dollar continued at the opening of the Asian session this morning (Tuesday) saw the price fall to around 1.24500.
The price slowly resumed the early trading of the European session while reacting to the Moving Average 50 (MA50) line on the 1-hour time frame of the GBP/USD chart for further price direction.
If the price continues to fall, the 1.24000 level is the closest that will be the focus for the price to test with a bearish signal for the price.
An extended decline will then return to 1.23000, the level that was a stop last week before making a strong rebound.
If the decline does not occur and the price returns to show an increase, the resistance at the 1.25000 zone should be broken to continue the bullish pattern of last week.
A continued rise higher will target 1.26000 for the price to record a new high.
