In Late November, GBP/USD Headed Below $1.2700

<p>&nbsp;Investors are alert to changes in price movement patterns occurring on the chart of the GBP/USD currency pair which are influenced by the reaction to the US dollar currency.</p><p><br /></p><p>The factor of profit taking activity by market players is seen to change the direction of the movement of the US dollar at the close of trading in November yesterday.</p><p><br /></p><p>Although the economic data of the United States (US) was published gloomy in the New York session, the US dollar remained showing strengthening in the last session.</p><p><br /></p><p>Thus, the price has displayed a daily decline of around 100 pips on the GBP/USD chart approaching the concentration level at 1.26000.</p><p><br /></p><p>The drop followed a flat price movement in the 1.27000 zone when the previous price rally failed to break through the resistance.</p><p><br /></p><p>The initial signal of a change in the bearish trend is assessed by investors when the price starts to fall below the support level of the Moving Average 50 (MA50) on the 1-hour time frame of the GBP/USD chart.</p><p><br /></p><p>The price movement continued today (Friday) slowly in the middle of the price range between 1.27000 to 1.26000.</p><p><br /></p><p><br /></p><p>Investors remain cautious on December's opening trade today which is also the close for the week's trade.</p><p><br /></p><p>If the downtrend continues, the price will drop lower past the 1.26000 level before exhibiting a more obvious bearish movement.</p><p><br /></p><p>The next target level is at 1.25000 if the decline continues.</p><p><br /></p><p>Meanwhile, if the increase is exhibited again after this, the price will retest the resistance level of 1.27000 which was an obstacle to the previous increase.</p><p><br /></p><p>If the price finally manages to overcome it, the latest high level will be recorded with the potential level reached higher at 1.28000 or 1.29000.</p>