Looking at the market last week, the strengthening of the Pound was more evident in trade towards the end of the week after the central bank of England (BOE) raised interest rates at its latest policy meeting.
The situation is also driven by the depreciation factor for the US dollar currency in the market which gave a gloomy reaction to the United States (US) NFP employment report in the last session of the week, giving room for major currencies including the Pound to rise.
This week, the focus will be on the UK economic growth data which will affect the Pound currency while the US dollar will receive the impact of the reaction to the US inflation data that will be published.
On the chart of the GBP/USD currency pair, the price has fallen to the 1.26200 level last Thursday, before showing a bullish pattern again on Friday.
When the reaction to the US NFP report was published, the price had jumped from the 1.27000 level to the 1.27900 level before retreating back to around 1.27500 at the close of the last session.
The flat price around that continued trading at the opening of the Asian session earlier this week.
But investors are ready for the possibility of another surge after the initial signal of a bullish movement where the price has moved above the support level of the Moving Average 50 (MA50) on the 1-hour time frame of the chart.
If the price increase continues after this, the high level reached last Friday will be overcome before the price goes to the next target at the 1.29000 resistance zone.
Next, the 1.3000 level will be the next focus if the rising price pattern continues.
On the other hand if the price plunges back below the 1.27000 level after breaking through the MA50 support, this will again be an indication for the bearish pattern of last week to resume.
The price drop will lead to the important zone of 1.26000 as a support zone that will invite an attractive price reaction for further price movement indicators.
