The price chart of the GBP/USD currency pair is increasingly showing signs of a downward trend.
Monitoring currency movements, the US dollar is seen to still maintain a good trading performance and add some pressure to the Pound.
Both major currencies will be influenced by the results of UK and US manufacturing and services PMI data today.
Indicators through technical analysis , investors observe the price movement on the GBP/USD chart since last week which is in an important zone.
From the close of last week until the beginning of this week, the price is seen to be slowly flattening above the 1.29000 zone.
Until yesterday's New York session, the price showed an attempt to test 1.29000 as support while making the price.
Price movements that are below the Moving Average 50 (MA50) obstacle line in the 1-hour time frame on the GBP/USD chart are also seen to indicate a bearish trend for prices.
The slow movement in the Asian session today (Tuesday) is seen breaking through the 1.29000 level and makes investors ready for a more severe fall that could happen hereafter.
Further declines if continued the price can be expected to reach again around 1.28000 to react to that concentration zone.
However, if the price manages to hold back above the 1.29000 level, a price rebound may occur to break the MA50 barrier.
Next, only then can the price make a higher increase again towards resistance at the 1.3000 level.
See the picture of the GBP/USD pair price chart below for your technical analysis reference.
The chart displayed above uses the SaracenMarkets platform, open your trading account at SaracenMarkets today. – CLICK HERE – START TRADING NOW
