Price Patterns Change, GBP/USD 'Bearish' This Week?

<p>&nbsp;Last week, price movements on the chart of the GBP/USD currency pair saw the closing price at the end of the week being lower than the opening at the beginning of the week.</p><p><br /></p><p>At first, the price showed a bullish pattern but the situation changed when the decline started towards the end of the week.</p><p><br /></p><p>The change in price patterns was driven by the strengthening factor of the US dollar following the inflation data of the United States (US) published on Thursday.</p><p><br /></p><p>An initial high was reached at 1.22300, but the price has plunged to a weekly low recorded at around 1.21220.</p><p><br /></p><p>A clear signal of a change in the bearish trend last week when the price moved below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart until trading continued at the opening earlier this week.</p><p><br /></p><p>The price is hovering slowly around 1.21500 in the Asian session this morning (Monday) with the expectation that the downward trend will continue.</p><p><br /></p><p><br /></p><p>A further decline is seen to target the 1.21000 level for the price to test the focus zone and the reaction displayed will be an indication of the next movement.</p><p><br /></p><p>If broken, the support level at 1.20500 will wait to be tested before the target will move to the 1.20000 zone.</p><p><br /></p><p>On the other hand, if the price increase occurs, the 1.22000 level becomes an important point to test and the price will try to break through the MA50 barrier.</p><p><br /></p><p>If it does, the upside could reach around 1.23000 again with a signal for a bullish trend reversal being reassessed.</p>