With Slow Tempo, GBP/USD Continues Downward Pattern

<p>&nbsp;The Pound currency continues to be 'hurt' this week continuing the depreciation of last week which was affected by the release of UK inflation data which decreased for June.</p><p><br /></p><p>The UK manufacturing and services PMI data published in yesterday's European session put more pressure on the Pound and are seen to make it difficult for the central bank to continue its monetary policy tightening.</p><p><br /></p><p>It was a different story for the US dollar when the same data published in the New York session was better for the United States (US), supporting the strengthening of the currency king earlier in the week.</p><p><br /></p><p>The strengthening is likely to be maintained ahead of the FOMC meeting when the market expects the Federal Reserve (Fed) to raise interest rates.</p><p><br /></p><p><br /></p><p><br /></p><p>The price chart of the GBP/USD currency pair is seen to be still maintaining a downward pattern until the opening of the beginning of this week, but the momentum is observed to be slightly slower.</p><p><br /></p><p>The price hit a low of 1.28000 in the New York session yesterday and remained moving below the 1-hour Moving Average 50 (MA50) barrier on the GBP/USD chart for a bearish signal.</p><p><br /></p><p><br /></p><p>The price drop is expected to continue further with the lower target being to reach the concentration level around 1.27000.</p><p><br /></p><p>It is expected that there will be an interesting reaction around it, the level has been an important support in the early trading of last July before the rising pattern was exhibited.</p><p><br /></p><p>If the break-through price is lower below 1.27000, a decline can be seen to reach the level of 1.26000 and then 1.25000.</p><p><br /></p><p>However, if the price makes an increase beyond the MA50 barrier, the 1.29000 resistance will be tested which will be an important signal for a change in the price trend again.</p><p><br /></p><p>Further price increases that continue will return to 1.30000 or higher resistance at 1.31000.</p>