The price chart of the GBP/USD currency pair at the opening of the early week yesterday was seen not to continue the downward pattern like last week.
This follows a renewed decline in the US dollar influenced by changes in global market sentiment which recovered as political uncertainty in Europe began to subside.
However, analysts do not rule out the potential for the US dollar to strengthen again this week after the hawkish tone that was still maintained at the FOMC meeting last week.
United States (US) retail sales data will be monitored in the New York session tonight which is expected to drive the movement of the US dollar.
As for the Pound, UK inflation data will be watched on Wednesday before the focus will be on the results of the Bank of England (BOE) policy meeting on Thursday.
Looking at the GBP/USD chart last week, the price has fallen to the 1.26600 level which is the lowest trading level for a period of 4 weeks.
On Monday yesterday too, once again the 1.26600 level was tested but managed to become a support to bounce the price back up past the 1.27000 level.
The slow price movement in the Asian session this morning (Tuesday) was seen hovering around the 1.27000 zone as investors assessed the price indication above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart.
If the price manages to jump from the 1.27000 zone, the price movement is more positive and tends to return to the height of 1.28000 which was the focus zone in the previous week's trading.
On the other hand, if it falls below 1.27000, it will give an indication for the price to continue the bearish pattern of last week.
A drop lower after breaking through the 1.26600 support would expect a target around 1.26000 to be hit by the price.
