Like other major currency pairs, price movements on the GBP/USD chart also did not elicit a significant reaction following the US NFP employment data report published last Friday.
The price is moving in the horizontal zone with the support level at 1.31000 and the resistance at 1.31700.
The pound remained gloomy until last week, still failing to show a strengthening after the central bank was seen to be on track for policy tightening which was also supported by strong inflation and employment data readings.
The price movement is seen to be more driven by the US dollar with the focus this week being on the minutes report of the FOMC meeting which will be scrutinized by investors.
If the market reaction returns in favor of the strengthening US dollar, the price is expected to continue lower to maintain the bearish signal after the price last weekend moved below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the GBP/USD chart.
The decline below the 1.31000 level is seen to lead to the support zone at 1.30000 before the continued lower decline will test the 1.29000 level.
On the other hand if the price manages to rebound again, the resistance zone at 1.31700-1.32000 will be tested again after failing to break on last week’s attempt.
Passing the resistance zone will push the price towards the high level of 1.33000 which prevents the price from continuing to rise on the previous bullish trend.
The next continued higher rise could target up to the highs around 1.34000.
