The price increase continued on the chart of the GBP/USD currency pair continued on Monday yesterday after the price movement was relatively flat in the trade at the end of last week.
The continued weakness of the US dollar leaves room for the Pound to rise even as investors see risks to the British currency after dovish signals from the Bank of England (BOE) meeting last week.
The UK employment data report will be watched in the European session shortly which will influence the movement of the Pound, before the focus turns to the producer inflation (PPI) data of the United States (US) in the New York session.
Next, the main focus will be on the US consumer inflation (CPI) data on Wednesday with expected market movements to occur.
The price increase on the GBP/USD chart yesterday reached a height approaching 1.25700 in the New York session before the price leveled off until it continued into the Asian session this morning (Tuesday).
The price movement remains with a bullish signal that is above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart.
A higher move can be expected to continue towards the concentration level at 1.26000 which is in the resistance zone for the price.
If it succeeds in passing it, the latest high level can be recorded with the target moving to the 1.27000 zone.
On the other hand, if the published data prompts price reduction to occur, the 1.25000 level will be the initial focus of price testing.
Next, the price risks falling lower compared to last week's level before then reaching support around 1.24000.
