The chart of the GBP/USD currency pair last Friday showed a slight price recovery after the previous Thursday the price had plunged more than 200 pips.
The situation has been driven by the strengthening of the US dollar, which reacted to the release of strong US economic growth data for the second quarter of 2023, supporting the Federal Reserve's (Fed) policy tightening measures to continue.
As for Pound trading, investors will be cautious at the start of this week pending the outcome of the Bank of England's policy meeting on Thursday.
The Bank of England (BOE) is expected to raise interest rates by 25 basis points to the latest level of 5.25%.
The price on the GBP/USD chart which hit a low of around 1.27700 last week has bounced back and is close to touching the 1.29000 level again.
However, the price is hindered by the Moving Average 50 (MA50) level on the 1-hour time frame on the chart which restrains the price from rising higher to signal that it is still bearish.
The price movement was flat at the opening of the Asian session this morning (Monday) around 1.28500 while testing the MA50 barrier.
If the price falls again, the low level reached last week will try to be overcome by the price before recording the latest low level.
The 1.27000 level will be the next target to be tested and if that level is also successfully passed, the price will go to around 1.26000.
Meanwhile, if the price jumps past the important level of 1.29000, the price will go back to the level of 1.30000 which was an obstacle for the price last week.
Breaking that resistance will push the rise to continue to the previous concentration level at 1.31000.
