The price movement on the chart of the GBP/USD currency pair shows a bullish pattern at the opening of the early week.
However, the price increase did not succeed in continuing on Tuesday trading yesterday following the strengthening of the US dollar currency.
The situation is driven by the market's reaction to the latest statement by some members of the Federal Reserve (Fed) with a hawkish tone.
With indications that the Fed's monetary policy will continue to be maintained has given support to the US dollar to resume the strengthening momentum of last week.
On the GBP/USD chart, prices have shown gains at the beginning of the week to recover from last week's sharp drop.
However, the price increase failed to break the resistance level of 1.27000 tested on Tuesday yesterday which was limited by the US dollar's strengthening situation.
Even so, the price still hovering above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart gives hope that price increases can still happen.
The price needs to break the 1.27000 resistance to continue the move higher.
If that happens, last week's highs around 1.27400 are likely to be overcome before heading towards the focus zone at 1.28000.
On the other hand, if it plunges again after failing to pass the 1.27000 zone, the level reached at the end of last week is seen to be the focus again, i.e. the level around 1.26200.
Next, the 1.26000 zone becomes the target as an important zone for the price to drop to the latest low.
