An attractive price movement also occurred on the chart of the GBP/USD currency pair at the end of last week with reactions seen at important levels.
The situation is influenced by the US dollar which initially strengthened slightly and then significantly weakened in the last trading session last week.
Survey data for the manufacturing sector in the United States (US) came in with a declining reading for February.
Thus, this has a re-depreciation effect on the US dollar with some of the latest data to be observed this week as well, especially the NFP employment data report.
Last Friday, the price on the GBP/USD chart was initially seen to make a decline and has reached an important level that is the focus of analysts which is 1.26000.
As expected for a reaction to occur, the price continues to bounce back showing an increase as soon as the drop touches that level.
A jump of around 60 pips in the last session last week gave an early signal for a change in the price trend to happen.
This is because the price seen has started to move above the Moving Average 50 (MA50) line on the 1-hour time frame on the chart as a signal of a change in the bullish trend.
A price increase if it happens at the beginning of this week will see the resistance level of 1.27000 retested again.
Over the past few weeks, the level has remained immune preventing the price from breaking through it.
If this week's rise in price manages to break through to the top, the latest high level will be recorded and the latest price target will move to around 1.28000.
However if the decline is shown again, the 1.26000 support level hit last week will be the focus to target.
After the price breaks lower below it, the price movement will show a bearish pattern and may go up to the 1.25000 zone.
