The bearish pattern continued on the chart of the GBP/USD currency pair at the beginning of the week yesterday, following the decline that occurred at the end of last week.
The price was seen testing the 1.27000 level but failed to overcome it before the decline continued lower in the European and New York sessions yesterday to the 1.26300 level.
The US dollar still has some strengthening momentum from last week's end sessions, but the momentum is seen to be slow.
Meanwhile, the Pound fell further as markets expected inflation in the UK to decline further when data was published on Wednesday.
The price movement that continues to move below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart suggests further declines will continue after this.
The price hovering around the 1.26600 level in the Asian session this morning (Tuesday) is expected to continue its decline towards the 1.26000 level before giving a reaction to the next movement indicator.
If the break-through price is lower, this will indicate that the bearish movement will continue again to reach the main price support zone at 1.25000 as in the previous weeks.
On the other hand if the price changes direction upwards, the MA50 barrier will be overcome before crossing the 1.27000 resistance level for a bullish trend reversal signal.
Next the price will be ready to jump back to the high level reached last week near the 1.28000 zone.
If a strong increase in price occurs, the latest high could be recorded again in price before the next target will move at 1.29000.
