Bearish signal! GBP/USD Fails to Hold Above $1.2800


The bearish price pattern was displayed on the chart of the GBP/USD currency pair more clearly in the New York session yesterday after the market reacted to the published data.

Some economic data of the United States (US) including producer inflation (PPI), show encouraging readings.

The situation that increases the tendency for the Federal Reserve (Fed) to delay interest rate cuts has given strengthening support to the US dollar.

Thus, the Pound currency is no exception to receive the brunt of the pressure, seeing a fall on the price chart.

At first, the price showed a slow increase in the European session yesterday to the level of 1.28200 before in the next session, the price plunged around 90 pips to reach the level of 1.27300.

Price movement that is back below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart indicates a bearish signal.

Prices moved flat in the Asian session this morning (Friday) but lower declines are expected to continue in the following sessions.

The decline that will continue is seen to test the RBS (resistance become support) zone of 1.27000 which is getting closer.

A break lower will move the price target to the next concentration level which is at 1.26000.

However, a change in price direction can occur with uncertainty in trading at the end of the week.

If the price jumps back to increase again, the nearest resistance will be tested at the 1.28000 zone.

If it continues higher, the price will climb back towards the target level of 1.29000 to test the important resistance.