GBP/USD Nears $1.2700 Again, Will Record New Highs?


Following the US dollar showing a declining pattern at the end of the week, trading on the chart of the GBP/USD currency pair is seen again reaching a high level of around 1.27000.

The zone became price-tested resistance on Thursday as prices continued to climb to record new highs amid weak US dollar movement.

The situation has been fueled by the publication of the United States (US) inflation data which decreased and rekindled expectations for interest rate cuts by the Federal Reserve (Fed).

The minutes of the FOMC meeting will be watched this week while some UK economic data is also expected to influence the movement of the Pound after the central bank of England (BOE) gave an early signal to prepare for policy easing at the latest meeting.

Currency analysts expect the situation this week to still not be in favor of the US dollar, which tends to move weakly, but do not rule out strengthening could occur if there are recent factors that support the situation.

On the GBP/USD chart, the price has retreated slightly from the 1.27000 level that was tested before rebounding back to that height in the last trading session last week.

Continuing the trade at the opening of the week earlier, the price leveled slowly throughout the Asian session this morning around the 1.27000 mark.

A sustained price movement above the Moving Average 50 (MA50) support line on the 1-hour timeframe on the GBP/USD chart signals a bullish trend.

A higher rise will be expected to record the latest high level again with a target towards the 1.28000 zone.

However if the price fails to continue the rise past 1.27000, the risk is for the decline to happen again.

Expected bearishness is likely to return closer to the concentration zone at 1.26000.