The price drop pattern on the GBP/USD currency pair chart at the beginning of the week yesterday seems to have stalled due to the strengthening of the US dollar which failed to continue.
Last Friday, the US dollar was significantly stronger as the reaction to the United States (US) NFP employment data report showed encouraging readings for May, while expecting the strengthening to continue this week.
However, on the contrary, what happens when the US dollar moves bleak is that the market is likely to be in a cautious mode waiting for a more important indication for the Federal Reserve (Fed), which is the US inflation data on Wednesday.
And early Thursday morning, the focus will be on the latest FOMC meeting for the June 2024 edition.
As for the Pound, investors should keep an eye on the UK jobs report in the European session before paying attention to the UK economic growth data on Wednesday.
If you look at the GBP/USD chart, last Friday the price of black fell from the 1.28000 resistance zone.
At the beginning of this week, the slow decline of the price managed to reach the concentration zone of 1.27000 which was previously a support for the price.
However, further declines did not occur as the zone once again bounced back higher in yesterday's New York session.
Slow price movement in the Asian session this morning around the 1.27300 level and seen testing the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart which will be assessed for further movement.
If the price makes a further decline, the 1.27000 support zone will again be tested to be broken after several weeks of successfully resisting the price fall.
After the zone is broken, the price drop is expected to continue towards around 1.26000.
But if instead the price makes an increase beyond the MA50 barrier, there is a possibility for a higher price climb to occur.
Next, the resistance zone at 1.28000 will be the focus to be tested again before the price registers a new high level.
