The British Pound currency is seen to be taking advantage of the US dollar's weakening situation at the beginning of the week to jump to a new 5-week high on Monday yesterday.
The release of the United States (US) manufacturing PMI data yesterday's ISM survey slightly decreased for July, showing a decline for two consecutive months but still at a good level.
The published data reading did not have a significant impact on the movement of the US dollar in the New York session which remained gloomy, it is possible that investors are cautiously awaiting the US employment data report (NFP) at the end of this week which is also the focus of the Federal Reserve (Fed) for setting monetary policy.
The Pound currency started the week strong but investors need to be cautious ahead of the Bank of England (BOE) policy meeting this Thursday with an expected interest rate hike of 50 basis points to be implemented.
Pay attention to the price movement of the GBP/USD currency pair in early trading yesterday (Monday), the price was seen to have managed to move past the 1.22000 level at the opening of the European trading session after moving flat in the previous session.
Yesterday's daily surge was recorded around 140 pips almost touching the resistance level of 1.2300 before the price retreated slightly above that height at the close of trading in the New York session.
The price movement is still flat below the 1.2300 zone continued in the Asian session this morning (Tuesday), but is still seen to be in a bullish trend with the price remaining moving above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart.
For a higher upside forecast, the 1.23000 barrier will continue to be tested before being breached for the price to continue its further surge to the 1.24000 zone target to record the latest 7-week high.
For the target of a higher increase, the height zone at 1.25000 will be observed for the price to be reached if the bullish trend is successfully maintained.
On the other hand, if the price fails to break through the 1.23000 barrier level and displays a further decline, investors will assess the signal for a bearish trend change after the price starts to decline below the MA50 level after testing the support level at 1.22000.
The price that continues to decline past the 1.22000 level is seen to return to the 1.21000 level that was the focus of last week's trading.
