Price movements on the chart of the GBP/USD currency pair ended trading at the end of last week relatively flat.
The price drop exhibited in the middle of the week did not succeed in continuing following the US dollar's gloomy movement again.
In the last session, the PCE price index data which measures the personal spending of consumers in the United States (US) showed a less encouraging reading in May.
The pound survived a plunge lower, key data this week will determine further price direction.
As can be seen on the GBP/USD chart earlier this week, a bullish pattern started to appear after the initial signal of a trend change at the end of last week with the price moving above the Moving Average 50 (MA50) support line on the 1-hour time frame.
The price increase is seen to once again challenge the 1.27000 resistance level that failed to break through last week after being tested.
If it succeeds in breaking through, the price will move higher with the target of going to the next zone at 1.28000.
However, with the important data that will appear this week will make trading uncertain.
A fall in prices can also happen for prices to change direction again and signal a bearish trend reversal.
If the price declines lower, it is likely that the support zone at 1.26000 will be approached again after last week's failure to touch it.
