The GBP/USD currency pair chart is seen extending its downward trend to new lows, maintaining the momentum of the move at the end of last week.
In addition to political unrest in the UK, the Pound currency is also under pressure from the UK economic growth report which still recorded a contraction figure for May.
The industrial data published together last Friday also came with a declining reading.
This pushed the price decline on the GBP/USD chart to reach the expected zone of 1.35000 at the end of the week.
Earlier in the day, investors had started to see a bearish signal of the price moving down below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart.
Starting trading below the 1.35000 level at the opening of the Asian session this Monday morning, the price slid down to reach around 1.34500 to record a new 3-week low.
The price however rebounded early in the European session and is seen heading towards 1.35000. However, a lower decline is still expected for the price to continue.
If the decline continues, the price is expected to test the support zone at 1.34000 in addition to continuing to record new lows.
On the other hand, if the price manages to rise above 1.35000 and overcome the MA50 barrier, the 1.36000 zone will be the focus to be tested.
The signal of a bullish trend change is clearer after passing all these resistances before it is expected to head towards around 1.37000.
