The bullish pattern on the chart of the GBP/USD currency pair stalled at the beginning of the week yesterday after the surge at the end of last week reached a fresh 3-week high.
The surge in prices was driven by the weakening of the US dollar when the reaction to the United States (US) NFP employment report was published with declining numbers.
However, investors are likely to refocus on the Federal Reserve's (Fed) monetary policy following a hawkish tone at last week's FOMC meeting.
Fed President Thomas Barkin's statement earlier in the week was seen to support the tone of Chairman Jerome Powell who is more inclined to maintain policy tightening.
Thus, the US dollar did not continue its depreciation while limiting the price increase to occur on the GBP/USD chart yesterday.
There was an uptick shown but the price failed to touch the resistance level at 1.26000 before showing a decline towards the end of the New York session.
The price movement hovered slowly around 1.25600 in the Asian session this morning (Tuesday) in addition to being seen testing the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the chart.
If the bullish pattern is successfully maintained, an upside could occur for the price to retest the resistance at 1.26000.
After finally succeeding in breaking through it, the price's latest high level will be reached with a target to reach 1.27000.
On the other hand if the price plunges to the bottom, the nearest concentration level expected to react is around 1.25000.
A further drop below that level is likely to push the price towards the next level of concentration around 1.24000.
