Towards the end of last week's trading, the price chart of the GBP/USD currency pair is seen increasingly showing a bearish pattern.
This halted the gains that took place earlier in the week which had hit a fresh 10-month high.
As the focus turned to the United States (US) NFP jobs data report on Friday, prices had fallen to 1.24000 in early reaction to the release of the data.
The US dollar strengthened slightly after the components of the published report were positive and supported the king of the currency, but the momentum faded again at the close of trading in the last session of the week.
The focus will be on US inflation data this week, and the Pound will react to UK economic growth data to be published on Thursday.
Also a speech by the Governor of the central bank of England (BOE) Andrew Bailey will be watched this week for further indications of monetary policy.
Until resuming trading at the beginning of this week, the price is still hovering slowly above the 1.24000 level in the Asian session this morning.
However, the price movement that remains below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart makes it difficult to expect the price to move higher.
If the price decline occurs below the 1.24000 level, the price could possibly drop lower towards the 1.22000 concentration zone.
Next, the RBS (resistance become support) zone at 1.22000 will be the target after the bearish price signal is clearer.
However, if the price manages to bounce back from the 1.24000 level, crossing the MA50 barrier will expect the bullish trend movement of the previous weeks to continue again.
The target is to first test the resistance level at 1.25000 before a successful continuation of the rise will record the latest high of the week.
