Compared to the horizontal movement on other price charts, the GBP/USD currency pair displayed a clearer direction at the opening of the early week yesterday.
Although the strengthening of the US dollar was not very significant, the Pound sank lower.
Today (Tuesday), manufacturing and services PMI data for the UK and the United States (US) to be published will affect both the Pound and the US dollar.
Examining the GBP/USD chart yesterday, the price continued its downward trend to lower levels after at the end of last week the price broke through the support level of 1.24000.
The level is now seen as the latest resistance for the price with yesterday's extended decline having reached the support level at 1.23000.
Once it touched that level, the price then bounced back before slowly closing the New York trading session around 1.23500.
Price movement remained slow in the vicinity continuing the trading of the Asian session this morning, but the price that is below the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart shows a bearish signal.
The expected decline pattern will continue with the 1.23000 support to be tested again.
If the price breaks down, the latest low for the year will be recorded with a target to head around 1.22000.
On the other hand, if the price makes a rise past the MA50 barrier and the 1.24000 resistance, this will be an early signal of a price trend change.
A higher driven rally looks set to try to head towards the 1.25000 level and test that previous resistance level.
