The continued decline in the US dollar until the end of the week has given room for the Pound Sterling to strengthen to show a new high on the GBP / USD pair price chart.
After the strengthening of the Pound Sterling is supported by the rising inflation rate in the UK on data released last Wednesday, the focus will be on UK retail sales data as well as manufacturing and services PMI data to be published in today's European session.
Based on price movements, the trend remains bullish after the price jumped past the resistance zone of 1.37000 and recorded the latest high since April 2018 at the level of 1.37400.
However, the price movement is seen to be more flat and slow down again and still move above the 1.37000 level.
The 1.37000 level will be the latest price support level or RBS (resistance become support) zone before a higher increase is expected in the next session.
Rising prices could reach the high of 1.38000 if the US dollar remains weak in the market.
On the other hand if the price plunges below the 1.37000 level, the Moving Average 50 (MA50) support level in the 1 hour timeframe will be tested before a lower decline will signal a bearish trend change again.
Further price decline is expected towards the RBS zone (resistance become support) 1.36000 before the fall of the price to the level of 1.35000.
