The Pound currency was seen to move gloomy after the end of last week's Bank of England (BOE) policy meeting with a surprise interest rate hike of 50 basis points.
Although the Pound is expected to strengthen in the period ahead, UK manufacturing and services PMI data published for June further limited the momentum.
The pound was gloomy at the end of the week due to lackluster data readings, as was the case with the Euro and US dollar.
On the movement on the chart of the GBP/USD currency pair, it can be observed that the price is hovering slowly above the 1.27000 level which is a support when making the price.
1.27000 is an important RBS (resistance become support) zone to evaluate and investors are indeed waiting for a price reaction in that area.
There was a slow price bounce until it continued at the opening of trading earlier this week.
The price movement in the Asian session shows the price testing the Moving Average 50 (MA50) barrier on the 1-hour time frame which is an indication of a bearish trend for the price.
If the price manages to break through the MA50, the price increase is likely to continue towards the resistance level reached last week around 1.28400.
Overcoming the rise to higher levels would expect the price to test the height zone at 1.29000 in addition to breaking the latest record high since April 2022.
However if the MA50 barrier fails to be crossed and the price bounces back down, the RBS 1.27000 zone will be watched for an indication of further movement.
If the price finally breaks through that important zone, it will be a signal that a bearish trend is about to begin.
The initial drop target is seen to be around 1.26000 before the price that continues the drop will go to around the 1.25000 concentration zone.
