The chart of the GBP/USD currency pair failed to break out of the flat zone last week even after key economic data in focus had already been published.
The mixed movement of the US dollar was the driver of price movements throughout the week while some UK economic data to be published this week is also expected to have an impact.
Last week, the United States (US) consumer inflation data that increased beyond expectations temporarily strengthened the US dollar, but the producer inflation data published in the last session of the week recorded the opposite reading.
The restrained strengthening momentum of the US dollar has clouded the direction for more pronounced price movements to occur at the end of the week.
Looking at the GBP/USD chart, the price is seen to have managed to survive above the 1.27000 level which remains a support for the price.
The highest level successfully reached last week was around 1.27800, still not touching the 1.28000 concentration zone.
The price opened around 1.27400 earlier in the Asian session for the early opening of the week and hovered around the Moving Average (MA50) line on the 1-hour time frame of the chart.
Investors watch the price reaction on that line for an early indication of price movement heading into the next sessions.
If the price successfully overcomes the height of last week, the rising pattern will be displayed towards the 1.28000 zone.
After the resistance zone is also successfully passed, a higher increase will be expected to the next target at 1.29000.
Investors will also remain vigilant if there is another decline and the 1.27000 level will once again be tested.
If the solid support succeeds and the price breaks through, a lower decline should be expected and likely to reach the 1.26000 zone.
