The bearish pattern is back on the GBP/USD currency pair chart since Tuesday yesterday and continues today.
At the beginning of the week, the price tried to continue the rise from the previous week, but stalled at the resistance zone at 1.36000.
The bearish situation was supported by the United States (US) consumer confidence survey data published in the New York session yesterday, which restored the performance of the US dollar.
Although not very significant, the US dollar is seen slowly regaining its strengthening momentum and is again putting pressure on the Pound.
The price retreated from the 3-year record high and investors are watching for early signs of a bearish trend change.
The decline in the New York session yesterday was seen landing at the 1.35000 level before slowing down and leveling off until the close of the session.
The price, which has moved down below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the GBP/USD chart, has shown early signs of a trend change.
Continuing trading in the Asian session this morning (Wednesday), the price fell lower to around 1.34600 before bouncing back to the 1.35000 level in the European session.
The downward price pattern is seen to continue if the US dollar manages to maintain its strength as several US economic data are awaited towards the end of the week.
If the decline continues, the price will retest the RBS (resistance becomes support) zone at 1.34000.
However, if the situation changes again and a strong surge occurs again, the MA50 barrier line will be exceeded for the price to once again test the 1.36000 resistance zone.
If it is successful in breaking through, the latest 3-year high will be recorded with the target shifting to around 1.37000.
