After a Severe Plunge, GBP/USD Calmed Back at the Start of the Week

<p>&nbsp;The price chart of the GBP/USD currency pair was seen rebounding in the early trading yesterday, not continuing the downward trend at the end of last week.</p><p><br /></p><p>The price slightly reduced some of the losses after a plunge of around 130 pips was displayed as the US dollar managed to strengthen until the last session of last week ended.</p><p><br /></p><p>The final reading of the UK services PMI data to be published in the European session will soon be in focus and will influence the current movement of the Pound.</p><p><br /></p><p><br /></p><p><br /></p><p>On Monday yesterday, the price made a rebound above the 1.26000 level up to the 1.26400 level before being blocked by the Moving Average 50 (MA50) level on the 1-hour timeframe on the GBP/USD chart.</p><p><br /></p><p>Horizontal price movement continued trading in the Asian session this morning (Tuesday) around 1.26200 with the MA50 still restrained.</p><p><br /></p><p>If pressed again, the price is likely to drop below the 1.26000 level and continue to decline again like last week.</p><p><br /></p><p><br /></p><p>A lower drop is expected to head towards the 1.25000 zone for a record low price for the 12-week trading period.</p><p><br /></p><p>However, if the price manages to jump above the MA50 barrier, this will change the bullish situation again.</p><p><br /></p><p>The price increase will go back to the 1.27000 level which is seen as a resistance for the price that needs to be tested.</p><p><br /></p><p>The level was also tested last Friday before the price plunged again.</p>