Positively tempered by the rise of the Euro earlier in the week after a hawkish hint by the European central bank, the Pound also showed an improvement in Monday's trading while the US dollar continued to depreciate.
However, investors remain wary of the Pound's movement, which is still embroiled in Brexit risks as agreement on the Northern Ireland protocol has yet to be reached.
The pound rose against the US dollar earlier in the week as recovering market sentiment prompted the king of the currency to maintain its bearish pattern last week.
On the price chart of the GBP/USD pair, the price that started trading in the Asian session yesterday continued to overcome the resistance zone of 1.25000 which is the high level reached last week.
The bulls have reached a high of 1.26000 recording the latest high for a 3 -week trading period.
The price movement that remains above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the GBP/USD chart still gives a bullish indication.
If the bullish pattern continues, the price is expected to rise to break the resistance at 1.26000.
Next the price will record the latest highs again with the higher upside target is heading around 1.27000.
On the other hand if the price makes a decline, the initial support level of the price is seen at 1.25000 which is the resistance level on last week’s trading.
Signaling for a bearish movement of the price after falling below the support level of MA50, the price is expected to return towards the 1.24000 zone.
Investors will also focus on the release of economic data of the manufacturing and services sectors in the UK which will influence the movement of the Pound in the European session in the near future.
