The bullish pattern continued on the chart of the GBP/USD currency pair at the opening of the early week yesterday after gains were displayed in last Friday's trade.
The US dollar which is moving weak again is the trigger factor for the increase to happen again even though the Pound is still at risk for a more serious fall.
A drop in the UK inflation rate in data readings published last week has seen the value of the British currency fall.
Following the publication of weak economic data from the United States (US), including the final reading of the US economic growth in the third quarter as well as the PCE price index data, has given some room for the Pound to move higher against the US dollar until the beginning of Monday week yesterday.
After the price increase managed to pass the 1.27000 level, the latest high was reached in the New York session yesterday around 1.27400 before the price retreated back to the 1.27000 zone at the close of the session.
Price movement is still hovering around 1.27000 in the Asian session this morning (Tuesday) with price remaining above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart which suggests a bullish move earlier this week.
If the bullish pattern successfully continues, the price is likely to overcome yesterday's high before heading towards the concentration zone at 1.28000.
If the zone is successfully passed, the price will record the highest level in the latest 5 months.
However, if the price fails to hold above the 1.27000 level, a further decline in price that will cross the MA50 support will signal a change in trend again.
The downward movement of the price will target the closest level to target at the 1.26000 concentration zone that was almost touched last week.
If the penetration is lower, then the bearish price movement will continue towards the 1.25000 support that was tested in mid-December trading.
