The US dollar's decline in early trading yesterday has pushed the price on the GBP/USD currency pair chart to a new 3-year high.
The US dollar's strengthening last week failed to continue as trade talks between the United States (US) and China are still pending.
Although President Trump announced that there are talks with China, Beijing denied this.
While waiting for clearer indications, investors are cautious at the beginning of the week awaiting US economic data to be published.
Starting trading in the early session yesterday around the 1.33000 zone, the price has made an increase and then surpassed the resistance zone at 1.34000.
The zone was tested in trading last week but the rise higher failed to continue.
The 1.34400 high reached last week surpassed the 3-year high, but prices are seen retreating slightly to the 1.34000 level again towards the opening of the European session.
Price movement still remains above the Moving Average 50 (MA50) support line on the 1-hour timeframe on the GBP/USD chart, expecting the bullish price trend to still have the potential to continue.
If the price increase continues, a new high will be recorded surpassing yesterday's trading.
The next target is for the price to reach the next focus zone at 1.35000.
However, if the price slides rapidly below the 1.34000 zone again, the price focus to be tested is the MA50 support line and last week's support zone at 1.33000.
If further declines occur, the price risks falling back to the 1.32000 zone and then towards around 1.31000.
