The UK jobs data report published on Tuesday yesterday was rated to record a good reading, but failed to inject the Pound’s strengthening into the market.
Pound investors are likely to be waiting for the UK's annual inflation data which will be the focus of today's European session (Wednesday) with inflation forecast to rise.
However, since the beginning of the week, the Pound has continued to show a dismal performance against the US dollar after closing last week's excellent trade.
The rebounding US dollar recorded a strengthening influenced by the increase in US 10 -year treasury yields has put pressure on most other major currencies in the market including the Pound.
On the price chart of the GBP/USD pair, the price is seen to have plunged around 160 pips from the high level reached last week until yesterday's New York session.
The decline from the 1.37400 price zone has retraced the 1.36000 zone for an indication of the beginning of a bearish trend that may have begun.
The price movement below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame also gives the expectation for further price declines to occur.
The lower decline is expected to head to the previous focus level around 1.35000 or even lower towards 1.34000 if the US dollar remains strong against the price.
On the other hand, if the Pound regains its momentum, it is likely that the positive reaction of inflation data could make the price increase happen again.
The price increase is seen to test the level of 1.36500 in the SBR zone (support become resistance) before signaling a change in the bullish trend again.
The next rise will test the 1.37400 high zone reached last week after recording an 11 -week high.
