Two weeks in a row of gains, the price chart of the GBP/USD currency pair recorded its biggest weekly jump of the year last week.
This was driven by a significant depreciation of the US dollar following the inflation data published in June, which further strengthened the view of the Federal Reserve (Fed) policy makers that the tightening measures are coming to an end.
However, next week, the FOMC meeting is expected to see interest rate hikes be implemented once again.
The Pound currency took advantage of the space to continue to rise to its latest high since April 2022.
As of the end of last week, the price has reached a recent high around 1.31400 but closed the trade in the last session around the 1.31000 level.
A slow start to the week's early opening in the Asian session this morning (Monday), prices leveled below 1.31000 while the 1-hour Moving Average 50 (MA50) support level on the GBP/USD chart was tested.
If this week the US dollar continues to trade in decline, prices can continue to rise like last week to overcome the high level reached on Friday.
The next target is to head to the resistance zone at 1.31700-1.32000 on the continued rise.
However, if the decline is exhibited this week, the price may decline again towards the 1.30000 level and the price reaction will be observed.
Continuing the lower decline, expect the price to stop at around 1.29000, which was previously one of the focus levels for the price.
