The GBP/USD currency pair chart signals the start of a downtrend after the rise failed to continue.
On Thursday, the price hovered around 1.30000 in the Asian session and began to decline in the European session.
The US dollar, which has returned to showing recovery, pushed the price decline after investors digested the FOMC meeting.
The pound did not show a significant reaction after the Bank of England (BOE) meeting decision that kept interest rates unchanged at the previous level.
Investors were alert to the trend change signal when the price moved back below the Moving Average 50 (MA50) resistance line on the 1-hour timeframe on the GBP/USD chart.
The daily decline of around 70 pips yesterday reached around 1.29400 before bouncing slightly and closing the New York session around 1.29600.
The slow price around that area continued the opening of the Asian session this morning (Friday) and showed a decline at the end of the session.
If the decline continues in the final trading sessions of this week, the 1.29000 level is expected to be tested as the nearest support zone.
An extended decline below this level will shift the target to around the 1.28000 zone.
However, if the price rebounds again, the resistance at 1.30000 will be tested again as it has throughout this week.
After successfully breaking through that resistance, the price will exit the horizontal zone to record new highs towards the 1.31000 target.
