GBP/USD Extends Flat Below $1.2700 Resistance Zone!

<p>&nbsp;The price chart of the GBP/USD currency pair is seen to continue its horizontal movement in a range of 100 pips between the resistance of 1.27000 and the support of 1.26000.</p><p><br /></p><p>The strengthening displayed by the US dollar at the beginning of yesterday's week pressured the price to go down again.</p><p><br /></p><p>Initially, the price started trading at the opening of the Asian session yesterday (Monday) around 1.27000 which is the resistance zone tested since last week.</p><p><br /></p><p>However, the price decline was displayed until yesterday's New York session re-approached the support level at 1.26000.</p><p><br /></p><p>The price that has returned to move below the Moving Average 50 (MA50) obstacle line in the 1-hour time frame on the GBP/USD chart is an early warning to traders for a further drop in price that may occur.</p><p><br /></p><p>If the price declines past the 1.26000 level, investors should be prepared for the bearish signal and expect the price to fall to a lower level.</p><p><br /></p><p><br /></p><p>The target could reach up to the 1.25000 level or further at around 1.24000.</p><p><br /></p><p>However, if the price is able to show a surge back past the MA50 barrier, there is still potential for the price to continue the previous bullish trend movement.</p><p><br /></p><p>The price increase needs to overcome the resistance of the 1.27000 zone after breaking through the MA50 barrier level to signal a trend reversal again.</p><p><br /></p><p>For the record of the latest height level, 1.28000 is seen as the closest zone for the price to reach before the higher increase continues towards 1.29000.</p>