GBP/USD Breathes Again, Price Recovers To $1.2200 Level


 The price chart of the GBP/USD currency pair at the beginning of the week yesterday managed to reduce the losses experienced last Friday.

The price showed a re-increase following the decline of the US dollar which failed to maintain the strengthening as traded at the end of last week.

UK average income data will be examined in the European session shortly before the focus will shift to the release of United States (US) retail sales data in the New York session.

On the GBP/USD chart, it can be observed that the price that fell near the 1.21200 level at the end of last week returned to display a rising pattern again at the beginning of yesterday's week.

The rise in price has successfully crossed the 1.22000 level and also broken through the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart signaling a change to a bullish movement.

The price hovered slowly in the 1.22000 zone in the Asian session this morning (Tuesday) with the probability for the price to continue yesterday's increase.

If it continues successfully, the target is to reach the level of 1.23000 to 1.23300 which was the resistance zone tested in last week's trading.

A move higher will target the 1.24000 level and record a recent 4-week high.

Meanwhile, if the price returns to show another dive, a drop below the MA50 support will give an early warning for the price to fall lower after this.

The decline will lead to an important zone at 1.21000 and it is expected that there will be an attractive price reaction around that for an indication of the next movement.