The price movement on the chart of the GBP/USD currency pair since last week continues at the opening of the beginning of this week seen still hovering in a range of 100 pips between the 1.27000 and 1.26000 levels.
When the recovery of the US dollar after the Gross Domestic Product (GDP) data of the United States (US) was published, the US dollar strengthened a little again and depressed the price that had previously risen to reach the level of 1.27000.
However, in the last trading session of last week, the price showed an increase again following the US dollar being seen to be under pressure again following the statement delivered by the Chairman of the Federal Reserve (Fed) interpreted as dovish.
The majority of the market remains expecting no interest rate hike at the December FOMC meeting while seeing a phase of interest rate cuts to occur in mid-2024.
This situation which leads to further depreciation of the US dollar also directs the price tendency to continue to rise on the GBP/USD chart.
The price increase at the close of last week is seen to still fail to break through the resistance zone at 1.27000 and retreated slightly below it at the opening of the Asian session this Monday morning.
The price movement that is back above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart is a signal for the bullish movement to continue.
Investors are waiting for the price to break through the 1.27000 resistance before seeing the latest high level recorded again for the 4-month trading period.
The expectation of the continued increase is to reach 1.28000 or to 1.29000.
However, if the situation does not happen, instead the price will decrease, the level of 1.26000 will return to the price again.
If the price finally breaks through that level and moves down, this will be a bearish signal and a warning to investors to prepare for a further drop in price.
Targets will re-direct to previous focus zones such as 1.25000 or 1.24000 if the decline continues.
