Has the bullish price trend on the GBP/USD currency pair chart over?
If examined, the rally reached last week has reached an 11 -week high with the 1.37400 zone being an important price resistance.
But a drop in prices on Friday for last week's close of trading is likely due to profit -taking activity by investors for the US dollar which has been moving weakly throughout the week.
Investors are waiting for the US dollar to strengthen again as the Federal Reserve (Fed) is still on track for tightening its monetary policy with the focus to be on the FOMC meeting next week.
For the Pound, the UK employment data report is seen to be the driver for the movement of the British currency this week which will also influence the central bank's decision in policy setting.
Once the price on the GBP/USD chart started moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame, analysts started seeing early signals for the beginning of a bearish trend.
Yet the strengthening of the US dollar needs to happen for a clearer bearish trend movement this week.
Last weekend's decline was seen making the 1.36500 zone a price support zone with the horizontal price movement above the zone continuing at the beginning of this week's market opening.
A lower price drop beyond that zone will re -test some previous price focus zones such as the RBS (resistance become support) zone of 1.36000 or lower towards the 1.35000 zone.
On the other hand, if the price decline does not occur and the price resumes the bullish trend as in previous weeks, the resistance zone 1.37400 will be tested again.
Breaking the zone will push the price to record the latest high again with the expectation to the level around 1.38300.
