Price movements on the chart of the GBP/USD currency pair were flat at the beginning of the week yesterday at the end of July trading.
The 1.29000 level is seen to remain a resistance that is still restraining the advance of higher prices that did not continue the surge at the end of last week.
With the strengthening of the US dollar, the Pound was slightly depressed at the close of the New York session and prices continued the slow decline pattern at the beginning of the Asian session this morning (Tuesday).
The pound traded cautiously as investors awaited the outcome of the Bank of England (BOE) meeting on Thursday.
While the Pound is expected to show a dismal performance, the market will continue to watch the movement of the US dollar to see if its strengthening will continue.
The ISM survey data of the manufacturing sector in the United States (US) will be the focus of the New York session shortly, which will be published together with the JOLTS employment data.
The price movement that is below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart gives a bearish indication for the price.
The price drop is likely to continue further and will test the lowest level reached last Friday near 1.27600.
A break above that level will push the price lower towards the concentration zone at 1.27000 and the price reaction will be watched for further direction.
If the price bounces back past the MA50 barrier, the price can be expected to rise again to overcome yesterday's price level before heading to the 1.29000 resistance.
If the resistance is successfully overcome, the price will continue climbing higher towards the critical zone of last week which is at 1.30000.
