The Pound ended the week on a disappointing note as it plunged even after the Bank of England (BOE) raised interest rates at its latest policy meeting.
However, it was unexpected for investors when the British currency bounced back from last week's fall when the US dollar was experiencing a 'disaster' earlier this week.
The US dollar continued to move lower on Monday yesterday, continuing the decline that occurred after the impact of the United States (US) NFP employment data report published in the New York session last Friday which was disappointing.
This week's focus will be on US inflation data which will be published on Thursday, while UK economic growth data will be in focus on Friday.
The price action on the chart of the GBP/USD currency pair on Monday yesterday showed a daily increase of up to 250 pips to maintain the bullish momentum of the end of last week.
The price started to rise from the 1.13000 level until it crossed the target resistance level at 1.15000 and reached a height of around 1.15400 at the end of the New York session.
The price then moved slowly hovering above the 1.15000 level in trading that continued into the Asian session this Tuesday morning.
Remaining above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart, the price is expected to continue the bullish movement with the target of heading back to the resistance level of 1.16000.
The level was the opening price level in early trading last week before the price finally plunged.
For the expected price drop below the 1.15000-1.14500 zone, the target is at the 1.13000 support again before the price falling below the MA50 level will signal a bearish trend change.
A lower drop is then seen to approach the previous concentration levels such as 1.12000 and the 1.11000 support zone.
