The price decline continued on the GBP/USD currency pair chart as it resumed trading at the opening early this week.
This followed the bearish pattern that was displayed at the close of last week when the Pound continued to depreciate against the US dollar.
The US dollar's performance is still good, hovering at a 3-week high, but traders are cautiously awaiting the release of the United States (US) inflation report in the New York session tonight.
On Wednesday, UK inflation data will be the focus in the European session and will influence the Pound's movement.
The price started trading in the 1.35000 zone at the opening of the Asian session on Monday morning before the decline extended to the latest 3-week low.
The decline, which continued until the close of the New York session, reached around 1.34200 before the price moved flat in the Asian session this morning.
By maintaining the movement below the Moving Average 50 (MA50) resistance line on the 1-hour time frame of the GBP/USD chart, the bearish trend is expected to continue.
The price is getting closer to reaching 1.34000 with the expectation that the important zone will be tested and the price reaction will be observed.
A break lower will move the price target to around 1.33000.
However, if the price manages to make a comeback, the 1.35000 level is seen as the focus to be tested again.
A rise above this level will give an early signal for a change in the bullish trend again with the expectation that the price will head back towards the 1.36000 zone.
