Failing to maintain the bullish pattern, the chart of the GBP/USD currency pair is again showing a decline at the end of last week.
As feared, the Pound continues to be at additional risk after the central bank of England (BOE) at its policy meeting last week signaled an end to its monetary policy tightening.
Investors did not place high confidence during the price increase last week, instead seeing the increase that occurred due to the US dollar currency which experienced depreciation and was still traded uncertainly.
The focus for Pound trading this week will be on the release of UK jobs and inflation data. Meanwhile, the US inflation data will affect the movement of the US dollar.
If observed last week, the price on the GBP/USD chart made a rise to test the resistance zone at 1.22000, but failed to break through it.
The decline occurred again until the price fell below the 1.21000 level and closed the trade in the last session of the week at around the 1.20500 level.
Following the opening of trading earlier this week, prices are still hovering slowly around that in the Asian session this morning.
However, a lower decline is expected due to the bearish signal that the price has moved below the Moving Average 50 (MA50) barrier level on the movement in the 1-hour time frame of the GBP/USD chart.
The 1.20000 focus level will be the initial focus to test before the price is likely to extend the decline off the recent lows.
A further decline is expected to reach around 1.18800.
But be careful if there is a rebound in price if it successfully crosses the 1.21000 level and the MA50 barrier.
The rise will continue towards the resistance zone at 1.22000 last week or may break through to higher levels.
