Having weathered last week's trading well, the Pound this week will face the risk of the outcome of the monetary policy meeting by the central bank of England (BOE) on Thursday.
Although several factors are still putting pressure on the movement of the Pound, but the British currency has managed to perform well, especially against the weakening US dollar.
On the chart the GBP/USD pair clearly saw the bullish pattern over the past week continuing the momentum of the surge done in the previous week.
However, the rise in prices over the weekend did not reach the level of analysts' expectations of 1.40000 before the price declined slightly at the end of trading is likely to be driven by profit -taking activities by investors.
The decline returned to the support level of 1.39000 and the price was also seen flat at the market opening earlier this week.
Investors are wary to place trading positions following a bearish move that returns below the Moving Average 50 (MA50) barrier level on the 1-hour movement with the risk of the end of the bullish movement.
If the price decline continues, the level of 1.38000 which is in the RBS zone (resistance become support) will be tested before the lower decline will lead to the level of 1.37000.
Yet if the decline is just a price correction, the upside will be expected to test the 1.40000 resistance zone this week. The price reaction in the zone will signal the next price movement.
If the price breaks the zone, the latest resistance target of the price is seen at 1.41000 for the price to record the latest 7 -week high.
