The US dollar managed to show some re-strengthening at the close of last week's trading session, after the release of US inflation and producer price data initially pushed the currency king lower.
The expected occurrence of profit-taking activities in addition to the US consumer sentiment survey data published in the New York session which increased beyond the forecast is seen as a strengthening factor for the US dollar.
Next, investors will pay attention to the release of US retail sales data and also the minutes of the FOMC meeting to assess the movement of the US dollar this week.
As for the Pound currency, investors are cautiously awaiting the publication of the United Kingdom (UK) employment data report and inflation data, which will also be monitored by the central bank of England (BOE) in setting its monetary policy.
Looking at the price movement on the chart of the GBP/USD currency pair, the price has shown an indication of a bearish trend change after a bearish pattern was shown at the end of last week's trading session.
On Friday, the price made a decline from the 1.22000 level until it reached the support level at 1.21000 with around 100 pips of daily decline recorded.
The price which also moved below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart has triggered a bearish trend change signal after failing to maintain the previous surge pattern.
If the price continues to decline and falls below the 1.21000 level, the price decline is seen to lead to the 1.20000 zone which became the price rebound zone when tested in early trading last August.
A further decline in price that successfully passes the zone will then target the next concentration levels at 1.19400 and 1.18800.
On the other hand, if the price successfully rebounds from the 1.21000 zone, the price increase will retest the resistance level at 1.22000 before signaling a change in the bullish trend after passing the MA50 barrier level on the price chart.
And for a higher rise, the price is expected to test the resistance zone at the height of 1.23000 after the rise in the price of several weeks is seen still failing to break through it.
