After the United States (US) NFP employment data was published, the price on the chart of the GBP/USD currency pair was seen to still manage to maintain a bullish pattern in the last trading session last week.
All components of the jobs report including the unemployment rate recorded encouraging readings, prompting a direct strengthening of the US dollar once it was published at the start of the New York session on Friday.
At first it can be seen that the price was pressed down below the level of 1.26000 again and reached around 1.25600.
However, the price did not break through the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart before bouncing back higher than the previous session's movement again.
The pound managed to perform better against the US dollar ahead of the Bank of England (BOE) policy meeting this week with an expected interest rate hike of 25 basis points to be implemented.
After hitting a recent 1-year high at 1.26500, price action slowed at the close of the last session last week and resumed the opening in the Asian session today (Monday).
With the bullish pattern still successfully maintained, the price is expected to continue rising higher towards the next target at 1.27000.
But if the US dollar is stronger and sinks the price down again, the nearest support level for the price can be seen at 1.26000 which was previously an important resistance zone and has been successfully broken through.
If the price breaks lower to the downside, a bearish signal will be observed before the price is expected to head towards the previous concentration level at 1.25000 again.
In addition to the BOE meeting, investors should also be alert for the release of US inflation data which will add to the market turmoil this week.
