The close of last week's trading session has seen the US dollar moving weakly, giving room to other major currencies to make gains in the market including the Pound.
The situation is expected to continue as investors are wary of the focus of the United States (US) CPI data that will be published in the New York session tomorrow night (Tuesday) which is predicted to shrink to a lower level for August compared to July.
The Pound currency will be affected by the release of United Kingdom (UK) Gross Domestic Product (GDP) data at the beginning of the opening of the European trading session soon which is expected to be positive and can support the Pound to continue strengthening at the beginning of this week.
In addition, investors are also looking forward to the release of UK employment data and UK inflation data in the middle of the week, while the central bank of England's policy meeting was postponed to next week due to the death of Queen Elizabeth.
The UK inflation rate which is predicted to remain at the highest level in 40 years is expected to push the Bank Of England (BOE) to be more aggressive in continuing to increase interest rates at next week's meeting.
Judging by the price movement on the chart of the GBP/USD currency pair at the end of last week, the price that managed to show a surge on Friday recorded a daily increase of around 150 pips to close the trade at the 1.16500 resistance zone.
However, the price dropped back below 1.16000 in the last session of the week to around 1.15500 before closing trading around 1.16000.
Continuing on this morning's Asian trading session, the price was seen to open slightly higher by around 30 pips compared to the closing price level last week, but again slightly decreased hovering in the 1.16000 zone.
Investors are still evaluating the price movement in a bullish trend where the price remains above the Moving Average 50 (MA50) price support level on the 1-hour time frame on the GBP/USD pair chart continuing this week.
If the price manages to maintain the strengthening momentum, the price that passes the resistance of 1.16500 is expected to go to the support become resistance (SBR) zone of 1.17600-1.18000 which was the focus of trading at the end of August.
The price that succeeds in breaking through the SBR zone will target the 1.18800 concentration zone which was tested during the rally in Jackson Hole last time, but the price failed to break through it.
On the other hand, if there is a retracement after the price fails to break through the 1.16500 resistance, the MA50 support level will be tested before signaling a trend change on the price chart.
The continued decline will return to the 1.14500-1.1400 support zone that was hit last week and recorded the lowest level since 1985.
A lower break past the support zone is likely to target 1.13000 or 1.12000 to record a new 37-year low.
