The price chart of the GBP/USD currency pair last week also saw a surge to a recent 3-week high.
The jump was observed in the last session last week when the United States (US) NFP employment data report was published with a declining reading.
Employment growth in April was low, average income decreased while the unemployment rate again recorded an increase.
This has triggered a depreciation of the US dollar following expectations for the Federal Reserve (Fed) to move towards easing policy again.
This is contrary to the results of the FOMC meeting that ended earlier when the Fed and chairman Jerome Powell took a hawkish tone on monetary policy, but the US dollar was seen to fail to strengthen.
Looking at the GBP/USD chart, the price hovering in the 1.25000 zone has since surged past the target level of 1.26000 at the end of the week.
Reaching recent highs around 1.26300, the price retreated back to levels around 1.25300 before slowing and closing the last session trading around it.
The price is flat around the 1.25500 level in the Asian session this morning (Monday) as the price is observed to be crossing above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart which shows that the signal is still bullish.
The price increase if it continues to be displayed will try again to break the 1.26000 resistance before recording the latest high level.
The next target is at the height of 1.27000 if the US dollar remains weak and gives room for the Pound to rise.
If the opposite situation happens in the market, the decline in price is seen to approach the closest concentration level at 1.25000.
Once the signal is clearer for a bearish trend, the price will continue its decline to reach around 1.24000.
