The rise in price on the GBP/USD currency pair chart is starting to show signs of a trend change with the downward price pattern that was displayed yesterday Thursday.
The pound weakened further in the European session yesterday as the UK manufacturing and services PMI data was published for the July reading.
The manufacturing sector still remained below the 50-point reading level indicating contraction, while the services sector showed a lower-than-expected decline.
Adding to the weakness of the British currency at the end of this week was the publication at the beginning of the European session of UK retail sales data that failed to reach the target figure of 0.9% for June (forecast 1.2%).
The price on the GBP/USD chart has made an increase since the beginning of the week starting from the 1.34000 zone until it exceeded 1.35000.
However, further increases on Wednesday yesterday failed to touch the target level of 1.36000, only reaching 1.35800 before the decline was displayed on Thursday yesterday.
Until continuing to the Asian session this morning (Friday), the price has made a decline to around 1.35000 which shows a bearish signal with movement below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the GBP/USD chart.
If the price continues to decline lower, it is seen that it will reach last week's support zone at 1.34000.
However, if it rebounds to make an increase, the price will target 1.36000 as a resistance zone to be overcome.
Furthermore, the price that continues to increase higher will target around 1.37000 with a bullish signal.
