The US dollar which failed to strengthen after the minutes of the FOMC meeting were published early this morning has given room for the Pound to display a better performance.
The pound is seen showing a moderate recovery this week after weathering last week's turmoil in the face of key central bank data including jobs, inflation and UK economic growth.
Today the focus will be on the UK and US manufacturing and services PMI reports which will influence the movement of the Pound and the US dollar.
Examining the chart of the GBP/USD currency pair, the price leveled above the 1.26000 zone yesterday after failing to continue the surge that took place on Tuesday's trading.
A gloomy reaction towards the end of the New York session saw the price break above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart to suggest a bullish trend remains.
The price increase if it continues today past the height of last Tuesday around 1.26700 will also test the concentration level at 1.27000.
Next, a clearer bullish movement can push the price towards the 1.28000 zone.
Meanwhile, the forecast for a downward price movement, if it happens, will test the level of 1.26000 which is seen as support for the current price.
A break below that level could push the price to last week's concentration levels around 1.25400.
Next, the main support zone at 1.25000 will be the target to be tested on the downward pattern that the price continues.
