Price movements on the chart of the GBP/USD currency pair on Monday yesterday remained flat continuing a similar pattern displayed at the close of trading last week.
The US dollar is seen to still maintain its strengthening from last week but the momentum is fading as investors are cautiously awaiting the results of this week's FOMC meeting.
The pound is also trading at risk this week as the outcome of the Bank of England (BOE) policy meeting will also be watched.
Examining the GBP/USD chart, the horizontal movement of the price is seen to be tilted downwards with the price remaining below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart indicating a bearish trend.
Until resuming trading in the Asian session this morning (Tuesday), the price hovered slowly around the 1.27200 level and is expected to reach the 1.27000 level to test the RBS (resistance become support) zone.
If both the results of the BOE and Federal Reserve (Fed) meetings lead to lower prices, the target is to go to 1.26000.
The last time the price reached that level was at the beginning of last March, but it did not manage to penetrate lower.
As for expectations for price increases, crossing the MA50 barrier will expect prices to rise to return to the 1.28000 zone.
If the resistance is also successfully passed, the price can continue its further climb to reach the height of 1.29000 which it failed to do in the previous week.
