With the current market situation seen to be more in favor of the US dollar to strengthen and put pressure on most other major currencies, however, the Pound Sterling is seen to be still holding on.
Against the Euro which was successfully dominated by the US dollar, the Pound managed to absorb the pressure with several factors providing support to the British currency.
Investors are beginning to place confidence in the central bank of England (BOE) to further raise interest rates at its March policy meeting. This will make the rate hike 3 times in a row by the BOE for the first time since 1997.
On the price chart of the GBP/USD pair, the price is seen still moving in the horizontal zone with the price on Friday almost 100 pips above the 1.36000 level before closing trading in the last session last week around the 1.35500 level.
Still not giving a clearer signal, the price is hovering around the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
If a decline occurs earlier this week, the support level at 1.35000 is seen to be the initial focus to test.
A lower decline for a clearer bearish trend change signal, the price is likely to head up to the level of 1.34000 or the support zone at 1.33600.
As for the bullish situation, the 1.35700 level needs to be overcome by the price first before heading to the 1.36500 high zone.
The latest highs will continue to be recorded with the expectation that the bullish trend of the price will push the price up to the expected level around 1.37400.
