The price action on the chart of the GBP/USD currency pair is showing a price rebound as trading heads into last week's close.
Before that, investors received an early signal for the beginning of a bearish pattern following the price that had started to decline below the 1.27000 level.
Furthermore, the US dollar showed a recovery last week while the Pound is at risk of weakening following dovish signals by the central bank of England (BOE) to cut interest rates.
The price also moved below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the GBP/USD chart after a limited rally.
However, the price has bounced back above the 1.27000 level before ending trading in the last session around the 1.27500 level.
Slow price movement in the vicinity continued trading at the opening of the week.
Analysts expect the change in price direction at the close of last week to be due to profit taking activities by market players and the US dollar still has the potential to resume strengthening this week.
This week's indicators will also be observed through US economic growth data and the PCE index.
If the price continues to rise, the level reached last week which is 1.27600 will be challenged before the latest high is recorded.
The next price target is to test the concentration zone at 1.28000.
On the other hand, if the price returns to decline again past the MA50 line and the 1.27000 level, this will again indicate a bearish movement for the price.
The next price drop will be expected towards the RBS zone (resistance becomes support) at 1.26000.
