The price movement pattern on the chart of the GBP/USD currency pair changed in the middle of last week.
At the beginning of the week it can be observed that the price drop occurred when the US dollar managed to strengthen, but the momentum failed to be maintained at the end of the week.
The pound managed to show a recovery and reduce the previous pressure on the US dollar, after UK inflation data was published with higher figures than forecast.
Thus, the observed price fell to the level of 1.26000 and then rebounded around 100 pips and hovered in the 1.27000 zone until the last session of the week.
If the situation this week remains in favor of the Pound, the price on the GBP/USD chart could go even higher.
The price started trading in the Asian session this morning with a slow rising pattern above the 1.27000 level.
A bullish signal is observed when the price movement is back above the Moving Average 50 (MA50) line on the 1-hour time frame on the chart.
If the price increase continues to the following sessions, the level reached in the previous week will be tested again which is around 1.27800.
Next, the 1.28000 resistance zone will be a target for investors to watch for reactions when price increases continue to that area.
However, if the price after this fails to hold above the 1.27000 level, a decline will occur and the price will move below the MA50 barrier again.
The sign of the beginning of a bearish price movement will make investors wary of a decline towards the 1.26000 level reached last week.
If the level is also broken, the latest low will be recorded with the target being around 1.25000.
