Pound Sterling is considered to have a positive potential to maintain strengthening against the US dollar this week.
This follows expectations for the UK inflation rate on data readings due to be published this week to rise higher, keeping inflation at a 40-year high.
Thus, this situation is seen to continue to push the central bank of England (BOE) to continue tightening monetary policy after raising the latest interest rate by 75 basis points at the meeting earlier this November.
In addition, the UK employment data report will also be in focus on Tuesday.
Meanwhile, the US dollar remains weak following the resurgence of expectations that the Federal Reserve (Fed) will begin to slow down policy tightening following the NFP jobs report and declining US inflation.
On the price chart, the GBP/USD currency pair has seen a rise in prices reaching an 11-week high following the continued decline of the US dollar last week.
After the price surged past the 1.16000-1.16500 resistance zone, on Friday the price recorded a daily gain of around 200 pips reaching a high at the end of the final session at 1.18500.
However, starting trading at the beginning of this week, the price opened slightly lower to hover in the 1.18000 zone in the Asian session.
Although showing a slight decline, the price movement above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart still expects the price to continue the rise in the bullish trend.
The rise if continued is expected to test the resistance zone at 1.19000 before heading towards the target of 1.2000, the highest level since the end of August.
However, if the price starts to plunge again this week, the price will go back to 1.16500-1.16000 to test the RBS (resistance become support) zone.
A lower drop after a bearish trend change will be expected towards around 1.15000.
