A bearish price pattern is displayed on the chart of the GBP/USD currency pair with a significant decline occurring in the trading sessions at the end of last week.
The meeting of the central bank of England (BOE) did not give any support to the increase of the Pound, while the US dollar showed a strengthening following the risky market situation at the end of the week.
The interest rate cuts initiated by the Swiss central bank last week caused some panic in the market and this led to speculation that other central banks are likely to follow suit without waiting for action by the Federal Reserve (Fed).
Thus, investors have seen a drop of over 200 pips on the GBP/USD chart at the end of last week.
The price that initially surged after the FOMC meeting reached the 1.28000 zone, but the situation turned bearish again with a more significant decline displayed after that.
The price plunged below the 1.27000 level before extending the fall to the next concentration zone at 1.26000.
There was a price pull reaction around that zone, and the price was seen hovering around it at the opening trade earlier this week.
With the bearish movement of the price below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart, the price is seen to tend to decline lower.
If it fails to stay above the 1.26000 level, the decline will continue with the next target moving around 1.25000.
However, the situation could change again with the expectation of a further rise above the MA50 barrier and testing the resistance at the 1.27000 zone.
A rise higher than that would be a bullish signal for the price to recover and continue the previous bullish pattern.
