Price movement on the chart of the GBP/USD currency pair was limited at the beginning of the week when the rising pattern of the previous week failed to continue.
The US dollar, which suffered a decline last week after the inflation data of the United States (US) came out with a decreasing figure, started to move steadily yesterday.
This is driven by statements made by members of the Federal Reserve (Fed) who are still cautious in assessing the inflation situation.
In the meantime, the Pound is also at risk of experiencing a further fall as the central bank of England is seen preparing to implement interest rate cuts this summer.
The GBp/USD chart saw price test the 1.27000 resistance zone last week with a recent multi-week high.
At the beginning of the week yesterday, the price was flat throughout the day at the 1.27000 zone with a small movement range of around 30 pips only.
However, the price is still moving above the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the chart, which indicates that the movement signal is still bullish.
Continuing on this morning's Asian session, the price is seen to be still slow above the 1.27000 zone.
If after this the increase is successfully displayed, the price is expected to go to the next concentration zone at 1.28000 in addition to recording the latest high level.
After breaking through the zone, further upside will target up to 1.29000.
On the other hand, if the price pulls back from 1.27000, a bearish signal will appear and the price will likely re-approach the RBS (resistance become support) zone at 1.26000.
A drop lower from the zone will show a more clear bearish movement with the expected target moving to around 1.25000.
