The Pound currency managed to record a 4-week high against the US dollar when the rising pattern was successfully maintained until the last trading session last week.
The advantage was taken advantage of by the Pound when the US dollar weakened significantly on Thursday following the influence of the economic data of the United States (US) published.
However, will the bullish pattern be maintained this week?
Investors will be cautiously awaiting the results of the FOMC meeting and the US inflation data will also play a role in driving the price direction at the beginning of the week.
Interest rates are expected to remain at 5.25%, but investors are not ruling out the possibility of the Federal Reserve (Fed) raising rates like the surprises done by the central banks of Australia and Canada last week.
As for the Pound, UK employment data as well as economic growth readings for April will be watched which could also influence current price movements.
If observed on the chart of the GBP/USD currency pair, the increase displayed last week is just a little bit more to touch the concentration level of 1.26000.
Continuing the opening trade of the Asian session earlier this week, the price is still slow around that, but remains above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart to signal the continuation of the bullish movement.
If the rise succeeds in breaking through the 1.26000 resistance, the latest 5-week high will be recorded with a price target to reach around 1.27000.
The situation will be shown if the Pound manages to stay as good as the trade at the end of last week.
However, if the US dollar stands out more this week, the price will be pushed back down to around 1.25000 after passing the 1.25400 zone. MA50 support will also be tested.
If it breaks lower, the price can reach around 1.24000 which was previously a support level for last week's price.
