The price chart of the GBP/USD currency pair showed a bearish pattern over the past week leading up to the last trading session as the market focused on the latest United States (US) NFP jobs data report.
Examining the NFP report published in the New York session last Friday, all data components including employment growth, average wages and the unemployment rate show encouraging figures.
This opens up space again for the expectation of continued monetary policy tightening by the Federal Reserve (Fed) following a well-evaluated employment sector.
After ending last week's trading on a strong note, the US dollar looked a little gloomy at the opening of the week earlier with the Pound gaining slightly in value.
The two currencies of the US dollar in the Pound will await the results of their respective central bank meetings which are expected to drive the direction of movement over time.
It can be observed on the GBP/USD chart, the price started to rise again on Monday yesterday after the continuous decline pattern last week almost reaching the 1.25000 level.
The increase was seen almost touching the 1.26000 level again in the European session yesterday, but the price was pushed down again when continuing the opening of the New York session.
Starting the Asian session trading this morning (Tuesday) around 1.25500, the price is showing a rebound above the Moving Average 50 (MA50) level on the 1-hour time frame on the chart as investors assess whether it is a signal for a trend change.
The resistance at the 1.26000 zone is seen to be the main focus to be tested and if the price manages to break through it, then a higher increase will be expected.
Displaying a bullish move, the price will target back to reach the 1.27000 high and test the resistance zone.
However, if the price plunges again, the 1.25000 level will be targeted to be tested again like the situation at the end of last week.
A lower break that breaks through that level will see the price continue to fall towards the next target around 1.24000.
Some key data such as US inflation as well as UK employment and economic growth data will be watched to monitor current price movements.
