The price movement on the chart of the GBP/USD currency pair shows a bearish pattern at the opening of trading earlier this week.
The situation began to erode expectations to see prices soar higher after the bullish trend displayed over the past week.
The positive sentiment of the results of the England central bank meeting on Thursday also failed to sustain further gains even though the price managed to reach its latest 2 -week high last Thursday around 1.36200.
After a daily decline of around 100 pips on Friday following the US NFP report, investors began to be wary of price pattern changes as prices also moved below the Moving Average 50 (MA50) barrier level again for bearish signals.
The price movement on Monday was quite mixed but a slight decline saw the price hit the 1.35000 level testing the RBS (resistance become support) zone.
The rally resumed towards the end of the New York session, but investors are waiting for further signals as the price is still moving below the MA50 barrier level to resume the Asian session this morning (Tuesday).
If the US dollar continues to strengthen pushing the price lower, the RBS 1.35000 zone will continue to be tested until a lower breakout for a clearer bearish trend.
The lower price decline is expected to return to the level of 1.34000 as well as the support zone of 1.33700 which was tested in last January trading.
On the other hand, if the price manages to continue the price surge like last week, the levels of 1.35700 and also 1.36200 are expected to give an interesting reaction to the price.
Continued higher gains will lead to the 1.36500 level before targeting the 1.37400 high.
