While analysts expect a dismal performance by the Pound towards the end of the week with expected UK economic data to be published, it is a different story at the beginning of the week.
The pound rose to a 3-week high against the US dollar, but the gains were driven by a weaker US dollar after being hit by the US NFP jobs report published last week.
The president of the Federal Reserve (Fed) branch of San Francisco, Mary Daly stated that the options for the latest interest rate hike are likely to be 50 or 25 basis points.
This further strengthens the Fed's tendency to slow down its previous monetary policy tightening.
The market sentiment that was restored by the news of Hong Kong's opening after being closed 3 years ago started to clear the mood of the global market, but put pressure on the US dollar as a safe-haven currency.
Examining the price movement on the chart of the GBP/USD currency pair on Monday yesterday, the price has recorded a daily increase of around 100 pips, but the momentum is seen to be slower than the surge last Friday.
After breaking above the 1.21000 level, the price has reached a high of 1.22000 and started to slow down around that at the end of the New York session.
Continuing trading in the Asian session this morning (Tuesday), the price is slightly flat below 1.22000 which is now the latest resistance zone for the price.
However, a higher rise will be expected to pass the zone before targeting a new high around 1.23000.
But if the move higher fails to continue after getting stuck in the 1.22000 zone, the bearishness is likely to happen again.
The price will stop back at the 1.21000 zone and if the price fails to bounce, a lower drop breaking through the zone will lead to around 1.2000 or 1.19000 which was the focus of the previous weeks.
