A change in direction occurred on the chart of the GBP/USD currency pair at the beginning of the week yesterday when the price showed a recovery to recover from the previous fall.
Last week, after the end of the Bank of England (BOE) and FOMC meetings, the price has plummeted around more than 200 pips to the latest 5-week low.
In addition to the Pound showing a gloomy performance, the US dollar at the end of last week gained an advantage in a slightly risky market environment with the surprise of the Swiss central bank that lowered interest rates.
However, on Monday yesterday, the US dollar was seen moving gloomy and failed to maintain the strengthening momentum of last week.
Thus, the price on the GBP/USD chart started showing a slow increase yesterday as investors cautiously await the focus data that will be published this week.
If you look at the GBP/USD chart last week, the price has been pushed below the 1.26000 zone, but the lower decline has not continued.
On the other hand, at the beginning of yesterday's week, the price moved back above the 1.26000 level and then crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart, which gave an early signal for a change in the bullish trend.
The price movement is flat at around 1.26400 as trading heads into the close of the New York session.
If the price manages to extend its climb, the rise is seen to test resistance at the 1.27000 zone.
Passing that resistance will add to investors' optimistic expectations for the price to rise higher towards the 1.28000 level.
However, if the price goes down again, it will be a warning if the price drops below the 1.26000 level.
A further decline is possible with the price target moving to the next focus level at 1.25000.
