Ending last Friday’s trading with a dismal performance, the Pound was seen continuing to receive pressure by the strengthening US dollar until the close of last week’s trading.
On the price chart of the GBP/USD pair, the price continued to display a bearish pattern throughout the week with trading remaining dominated by the US dollar although the king of the currency did not strengthen significantly.
But the situation may be different during the week with expectations of published US inflation data forecast to rise even higher.
The situation of high rate hikes will continue to push the Federal Reserve (Fed) to increase their monetary policy tightening measures.
Meanwhile, the Pound will react to UK economic growth data in today’s European session before the focus will be on the UK jobs data report on Tuesday.
For now, investors are still evaluating the price movement on the GBP/USD chart remains in a bearish trend with the Moving Average 50 (MA50) barrier on the 1 hour time frame having been a resistance on bullish attempts over the past week.
Investors want to see if the price will continue to decline lower below the 1.3000 level after the support zone was tested at the end of last year when the price hit the latest 3 -week low.
The zone has managed to support a rebound when the price decline occurred in March trading last year.
If the zone is broken, the price will record the latest lows again with the target heading around the level of 1.29000.
However, if the price makes a jump past the MA50 barrier and starts signaling for a trend change to take place, the initial resistance at 1.31000 will be the focus for price testing.
The next continued higher rise will head back to the resistance zone at 1.31700-1.32000.
