The pound ended last week's trading on a dismal note as investors assessed the key economic data released as clues to the central bank's monetary base going forward.
While the average salary data was published rather encouragingly, the pound saw a positive movement so that the UK inflation data was given a peek.
After the published UK retail sales data slumped at the end of the week, the pound returned to its previous losses.
You can watch the price movement shown on the chart for the GBP/USD currency pair last week, with the price falling to the level of 1.27000.
Prior to that, the price increase had managed to reach a high of around 1.27870 but failed before touching the 1.28000 level.
After falling to the initial level of 1.27000, the price bounced again seeing that the level was still successful in curbing the fall lower.
Closing trades in the last session around 1.27300, prices slowly continued to open the Asian session earlier this week around that level.
If the price's initial decline holds, the support level at 1.27000 will be tested again this week and price reaction will hint at further moves.
If it breaks lower, the price will head to the next support zone at 1.26000 after being tested several times before but it hasn't been penetrated yet.
Conversely, if the price increases again, it is possible that last week's high level will be overcome by the price.
The 1.28000 zone will be tested and in case the price manages to continue its advance higher, the next target will be at 1.29000 to reach it.
