The continuation of the early week's bearish pattern on the GBP/USD currency pair chart did not occur in Tuesday's trading, as prices remained resilient.
The strengthening of the US dollar displayed on Monday was bleak again but still showed stable movement compared to most other major currencies.
The pound rose slightly after the price drop was seen reaching around 1.26200 before yesterday returning to near the 1.27000 level.
However, the level became a resistance for the price, seeing that the price failed to break through it when tested in the European and New York sessions.
Continuing trading in the Asian session this morning (Wednesday), the price dropped to around 1.26600 and began to give a bearish signal with a movement below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the GBP/USD chart.
If the decline continues lower in the following sessions, the focus is on the 1.26000 zone, which is expected to display an attractive price reaction.
Breaking lower, the price will re-reach the support zone of the previous week around 1.25000.
However, if the price manages to make a rebound, the resistance of 1.27000 will be tested again to try to overcome.
A rise higher will push the price to record a new 3-week high to the target of 1.28000.