The Pound again recorded a strengthening over the weekend following the market driven by profit taking activities during the publication of US inflation data.
Markets will be geared towards UK economic sector data and the Bank of England (BOE) meeting this week with optimistic expectations for the BOE tightening policy declining due to the increasingly annoying Omicron variant in the UK until movement restriction measures were announced last week.
But the focus is also on the FOMC meeting that will take place early this Thursday morning to see whether the Federal Reserve's (Fed) plan will meet expectations or otherwise on the path of policy tightening.
The price movement on the chart of the GBP/USD pair seems to rebound after the support zone of 1.32000 re -supported the surge which at once continued to break the resistance trendline.
The surge action to break the resistance trendline has also completely negated the descending triangle pattern displayed last week (Friday) to give an initial picture of the trend change.
The picture was strengthened after the price movement was seen again moving above the resistance level of the Moving Average 50 (MA50) which is often considered as an indication of an impending bullish trend.
If so, investors will definitely expect to see the price climb back to the SBR (support become resistance) zone of 1.33000 before issuing the next target.
A higher target will see the price reach the SBR zone of 1.34000 and indirectly this aspect will further strengthen investors' expectations for the price movement to remain bullish.
However, the trendline resistance and the support zone of 1.32000 will likely be the main focus if the price rebounds again or continues to make lower prices.
Further price declines will of course push the price movement to hit the lowest level since December 2020 around 1.31600 and is expected to be able to remain bearish again.
