The situation of the depreciation of the US dollar at the opening of the market earlier this week has pushed up prices on the chart of the GBP/USD currency pair during the Asian session.
The US dollar continued its bearish pattern last week following market sentiment which was assessed slightly recovering with reports of eased movement restrictions in China.
Pressure will continue to be faced by the US dollar while the market will wait to monitor the FOMC meeting minutes report as well as the upcoming US economic growth data.
The pound moved more positively against the dismal performance of the US dollar, but investors will be wary ahead of the release of economic sector data for manufacturing and services in the UK and US this week.
Last week, the UK employment data report had managed to boost the Pound but a negative reaction from the market was seen following the publication of the UK inflation data.
The pound managed to end last week's trade better against the US dollar which experienced a week of decline reaching a high of 1.25000.
The rise in the Asian session this morning was seen to have passed the resistance zone at 1.25000 thus surpassing last week's high.
The price movement above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the GBP/USD chart still gives a bullish signal for the price to continue rising higher.
The target for the next resistance is at 1.26000, which is the zone tested during the bullish reaction at the last FOMC meeting.
If the price makes a decline again, the initial support zone of the price is seen at 1.24000 before the lower decline can reach up to the level around 1.23000.
An extended decline will test the support zone at 1.21700 or a lower focus level at 1.21000.
