GBP/USD Falls Almost 100 Pips Below $1.2700 Level Again!

<p>&nbsp;A surprise for Pound investors yesterday, the price movement pattern that was displayed earlier has started to change following the return of the strengthening of the currency king, the US dollar.</p><p><br /></p><p>It can be observed on the chart of the GBP/USD currency pair, last week's price increase which continued at the beginning of this week started to signal a change of direction on Tuesday yesterday.</p><p><br /></p><p>This is because the price has displayed a daily drop of around 100 pips!</p><p><br /></p><p>Initially, the increase was displayed first in the Asian session reaching a height of around 1.27450 before the price decrease began to be papered in the European session and continued into the New York session.</p><p><br /></p><p>The price plunged past the 1.27000 level before reaching around 1.26500 in the New York session before rebounding slightly to close trading around 1.26800.</p><p><br /></p><p>The price is slowly hovering below the 1.27000 zone in the Asian session this morning (Wednesday) in addition to giving a bearish signal where the price is also seen to be below the Moving Average 50 (MA50) barrier on the 1-hour timeframe on the GBP/USD chart.</p><p><br /></p><p><br /></p><p>If the price fails to break above 1.27000, the decline could happen again to resume yesterday's pattern.</p><p><br /></p><p>Exceeding the price level in the New York session yesterday will push the price towards the 1.26000 support tested last week.</p><p><br /></p><p>However, if the price manages to jump above 1.27000 and also the MA50 barrier, this will be a bullish signal for the price to resume the previous upward pattern.</p><p><br /></p><p>Overcoming the highs reached yesterday, further gains are likely to be seen with the price target heading towards the 1.28000 resistance zone.</p>