The decline of the US dollar also gave room for the Pound currency to rise in the early trading of the week, seeing the upward movement of prices on the GBP/USD pair chart yesterday.
Investors need to be alert for the movement of both currencies as the direction of price movement will be influenced by the results of the FOMC meeting and also the Bank of England (BOE) this week.
In addition, the United States (US) NFP employment data report for October will also be expected to have an impact on market movements at the end of the week.
Examining the price movement on Monday yesterday, the price briefly tested the support level at 1.21000 before rebounding to make an increase in the European session followed by the New York session.
The bullish price has crossed the 1-hour Moving Average 50 (MA50) barrier on the GBP/USD chart to reach a high of around 1.21730 at the end of the New York session.
However, prices resumed trading in the Asian session this morning (Tuesday) showing a pullback to around 1.21400 to test the MA50 support level.
If the price increase successfully continues again, the closest target level to be reached is around 1.22000.
Next, a further increase in price is expected to reach the resistance zone at 1.23000.
On the other hand, if it falls lower today below the MA50 level, it will be an early signal for a bearish movement for the price.
The drop will test once again the 1.21000 support that was hit yesterday and if it breaks through lower, the price is seen to go to the 1.20500 concentration zone.
