The price movement pattern on the GBP/USD currency pair chart has started to give early signals for a trend change after successfully maintaining the price increase over the past week.
The opening of 2022 trading saw the US dollar have begun to show its strengthening putting initial pressure on most other major currencies in the market including the Pound.
Analysts want to see between the Pound and the US dollar, which will be more dominant after this.
This is following both the central banks of the Bank of England (BOE) and the Federal Reserve (Fed) each giving hawkish signals towards policy tightening at the latest meeting.
Yet the early opening of 2022 saw the US dollar first give an early warning to begin its strengthening. The US manufacturing PMI data of the ISM survey will be the focus of tonight's New York session.
The price on the GBP/USD chart has seen the rise that failed to continue at the beginning of the week has plunged all the way to the level of 1.34300 after the support level at 1.35000 failed to curb the price fall.
The price movement below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame has also signaled for the beginning of a bearish trend.
The lower price decline is expected to reach the level of 1.34000 before a continued decline will test the RBS (resistance become support) zone of 1.33600.
If the price returns to give an indication to continue the previous bullish trend, the level of 1.35000 will be the initial resistance that the price needs to break.
Next the price will test the highs reached last Friday before testing the latest highs at the 1.35700 zone.
