The price movement pattern on the chart of the GBP/USD currency pair yesterday was seen continuing to rise to higher levels after there was a bullish signal before.
The somewhat mixed trade of the US dollar until yesterday managed to give room for the price to rise past the 1.21000 level and towards the 1.22000 resistance zone.
However, the resistance zone failed to break through before the price reversed direction and made a further decline in New York session trading.
The pound came under pressure following indications from the central bank when one of the policymakers Silvana Tenreyro saw interest rates as too high and she considered cutting interest rates.
The dovish indicator is seen to challenge the Pound currency to resume trading next week.
UK economic growth data that will be published in the European session shortly will be focused on by investors who are seen to influence the movement of the Pound.
The price drop has continued into the early Asian session this morning back to the 1.21000 level and the price is seen also testing the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart.
If the rising pattern is still successfully maintained, the price will jump up again from the 1.21000 zone to test the 1.22000 resistance again.
Passing that important zone will give a clearer signal of a bullish price movement that will push the increase towards the level of 1.23000 or can reach the height of 1.24000 again.
However, if the price plunges in the closing trade this week, the initial target is to head towards 1.22000 and it is possible that the price could drop lower past the low level reached last Tuesday.
An extended decline will mark a fresh 5-week low with the next target around 1.18800 or lower at 1.18000.
