The outstanding performance of European currencies last week also saw the Pound Sterling strengthen from the beginning of the week until the England central bank meeting.
The Bank of England (BOE) meeting expectations to raise interest rates gave a clearer signal to move into the policy tightening phase.
The price on the chart of the GBP/USD currency pair has managed to record a weekly rise of around 240 pips from below the price zone of 1.34000 last week.
The weekly high was reached around the 1.36200 level last Thursday following the market reaction to the positive indications by the BOE on their monetary policy.
But the price spike did not meet investors' expectations to see higher gains as there were initial forecasts for the BOE to raise interest rates by up to 50 basis points from 25 basis points raised last week.
The uptrend however did not end well as prices declined last Friday influenced by market reaction to the release of the US NFP employment data report which injected a re -strengthening of the US dollar at last week’s trading close.
A daily decline of around 100 pips was exhibited on Friday with the declining price almost hitting back to the 1.35000 level which was seen as an important zone of price movement previously.
Investors also began to be wary of early expectations for a bearish trend change on the GBP/USD chart after the price plunged back below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame after falling above the 1.35700 level.
As for the price movement at the beginning of the week, the 1.35000 zone will be focused on whether it is able to provide support for the price spike again or otherwise the price declines lower.
Should the price rise again, the highs reached last week are expected to be overcome to continue higher gains likely to test the level around 1.36500.
On the other hand if the price falls lower below the support level of 1.35000, investors may assume the price failed to maintain last week’s bullish trend.
The decline will return to the focus level of 1.34000 and the support zone of 1.33600 which was reached at the end of January.
