The price increase pattern has stalled, the GBP/USD currency pair chart is seen starting to change direction showing a decline towards the end of the week.
The situation is driven by the strengthening of the US dollar after the United States (US) producer inflation data was published in the New York session yesterday showing an increase in readings for July.
However, investors will still watch for further clues through the release of retail sales data and the US consumer confidence survey in the last session of this week.
If you look at the price, it has made a continuous increase since last week until it returned to the focus zone at 1.36000.
Market analysts have warned investors to watch the price reaction that can determine the direction of further movement.
Like the situation in July trading, the price also retreated after testing the resistance zone of 1.36000 on Thursday yesterday.
In fact, the decline showing the price below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the GBP/USD chart signals that a trend change is about to begin.
The price reached around 1.35200 in the New York session yesterday before moving sideways to resume trading in the Asian session this morning (Friday).
If in the final sessions of this week the US dollar still maintains its strengthening, the price could drop lower below the 1.35000 level.
A more pronounced bearish movement would see the price continue to decline towards around 1.34000 for the price support level at the beginning of the week to be tested again.
On the other hand, if the price makes a comeback, the 1.36000 resistance remains the main zone to be tested and broken.
Beyond the increase to a new high, the target shifts to 1.37000 and then 1.38000.
