The bullish pattern on the GBP/USD currency pair chart at the end of last week failed to continue at the opening of yesterday's week.
On the other hand, prices moved flat throughout the day following the President's Day public holiday in the United States (US) which made the US dollar trade gloomy.
However, the situation is about to change today with UK and US manufacturing and service sector data due to be published and will affect the Pound and the US dollar.
The price remains hovering slowly above the 1.20000 zone with the 1.20500 level remaining a resistance for the price.
The price above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart signals that a bullish movement may occur.
However, investors are also wary if the US dollar returns to show a strengthening like last week.
This is due to the tendency of the Federal Reserve (Fed) which is seen to maintain policy tightening measures that can support the increase in the value of the US dollar for the near term.
For the expectation of a price increase if it happens, the initial level will be the focus seen at 1.21000 first.
Next, the increase will continue towards the resistance zone at 1.22000 which was tested in last week's trading.
On the other hand, if the price plunges below the 1.20000 level, a lower decline will be expected towards support around 1.19000.
Further decline if continued could reach up to the 1.18000 level for the price to record the latest 13-week low.
