Price movement on the chart of the GBP/USD currency pair has remained hovering in the 100 pips range for the past few weeks.
Last Friday, it can be observed that the price that went down tested the support level of 1.26000 and then bounced back up towards the closing of the last session of the week.
An early signal for a change in the bullish price trend is observed by investors when the price has started to be above the support line of the Moving Average 50 (MA50) on the 1-hour time frame of the GBP/USD chart.
As analysts expected, the bullish pattern continued at the early opening of the week yesterday.
The recorded daily increase of around 60 pips is seen retesting the previous important concentration level, which is the resistance of 1.27000.
Over the past few weeks, the price has tested the resistance several times, but has had difficulty breaking through it.
Once again the same situation occurred in the New York session yesterday when the price that was seen just touching the resistance level started to lose momentum and flattened below it.
Resuming trading in the Asian session this morning (Tuesday), prices remained sluggish below the 1.27000 resistance zone while investors remained cautious awaiting the release of important data in the New York session later this evening.
If the price manages to break through today's resistance of 1.27000, further upside will be shown for the price to record its latest 5-week high.
The target is to head to the next concentration zone which is at 1.28000.
However, if the price breaks the resistance of 1.27000, investors will watch if there are signs for the price to start falling again.
A break below the MA50 support would expect the current support level at 1.27000 to be tested again.
If it drops lower then the price will display a more clear bearish trend with the target heading up to around 1.25000.
