The price movement on the chart of the GBP/USD currency pair is judged to still want to maintain an upward pattern after facing the risk of falling prices before.
If observed, the level of 1.27000 remains a solid support for the price after being tested several weeks before including at the beginning of yesterday's week.
The price drop took place in the European session yesterday touching the 1.27000 level before the price then bounced up recording an increase of around 100 pips.
The increase was driven by the market's reaction to the ISM manufacturing survey data of the United States (US) published in the New York session yesterday which resulted in a significant depreciation of the US dollar.
Thus, this has pushed the price to jump up to the 1.28000 level and the flat price around the resistance zone continued trading in the Asian session this morning (Tuesday).
With bullish signals still being observed, the price looks likely to continue climbing higher to record its latest 12-week high.
The next target for the price to reach is at the height of 1.29000 which was the focus resistance zone during last March's trading.
On the other hand, if the rising pattern fails to be maintained, the price is at risk of reversing direction and making a decline again after failing to pass 1.28000.
The decline is expected to retrace to the 1.27000 level to once again test the support zone.
If the price breaks down, it will be a stronger bearish signal for the price with a lower expected drop towards the initial target at 1.26000.
