GBP/USD Continues Down Below $1.2700

<p>&nbsp;The bearish pattern continued on the chart of the GBP/USD currency pair at the beginning of the week yesterday, following the decline that occurred at the end of last week.</p><p><br /></p><p>The price was seen testing the 1.27000 level but failed to overcome it before the decline continued lower in the European and New York sessions yesterday to the 1.26300 level.</p><p><br /></p><p>The US dollar still has some strengthening momentum from last week's end sessions, but the momentum is seen to be slow.</p><p><br /></p><p>Meanwhile, the Pound fell further as markets expected inflation in the UK to decline further when data was published on Wednesday.</p><p><br /></p><p>The price movement that continues to move below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart suggests further declines will continue after this.</p><p><br /></p><p>The price hovering around the 1.26600 level in the Asian session this morning (Tuesday) is expected to continue its decline towards the 1.26000 level before giving a reaction to the next movement indicator.</p><p><br /></p><p><br /></p><p>If the break-through price is lower, this will indicate that the bearish movement will continue again to reach the main price support zone at 1.25000 as in the previous weeks.</p><p><br /></p><p>On the other hand if the price changes direction upwards, the MA50 barrier will be overcome before crossing the 1.27000 resistance level for a bullish trend reversal signal.</p><p><br /></p><p>Next the price will be ready to jump back to the high level reached last week near the 1.28000 zone.</p><p><br /></p><p>If a strong increase in price occurs, the latest high could be recorded again in price before the next target will move at 1.29000.</p>