The price action on the GBP/USD currency pair chart began to show a trend reversal pattern at the end of last week.
After testing the important resistance level at 1.27000, the price has retreated back down.
The price moving below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart signals the beginning of a bearish move.
Investors expect a tendency for the price to move lower this week due to the advantage in the US dollar currency that has the potential to pressure the price downwards.
In addition to the published data, the risk-on market sentiment also supports the US dollar to strengthen.
In addition to the tariffs announced by President Donald Trump against Mexico and Canada that will start on March 4, the tension of the meeting between Trump and the President of Ukraine at the White House last weekend is also in focus.
If the US dollar continues to strengthen further, a lower decline will occur on the GBP/USD chart.
Earlier this week, the price seemed to be hovering slowly at the 1.26000 level in addition to testing the MA50 barrier that investors are watching.
If the price breaks through the MA50 barrier, the rise will continue higher before heading back to the 1.27000 resistance last week.
If it manages to break through the resistance, the price will record a new 12-week high towards the target of 1.28000.
On the other hand, if the US dollar strengthens again, the price will make a jump from the 1.26000 level and then surpass the level reached at the close of last week around 1.25600.
Further decline in price will also test the focus level around 1.25000 before giving a sign for the next price direction.
