Compared to the surge pattern that was exhibited at the end of last week, the price on the chart of the GBP/USD currency pair at the opening of the beginning of the week yesterday was seen to be more flat.
The 1.3000 level remains a resistance that has not yet been breached by the price with a horizontal movement throughout Monday yesterday remaining below it.
However, the market now got the latest indication in the speech of Federal Reserve (Fed) Chairman Jerome Powell who signaled that the central bank does not need to wait for inflation to reach its 2% target to implement interest rate cuts.
Despite not showing an initial reaction, investors expect the US dollar to face a significant depreciation after this.
Other major currencies are set to shine including the Pound and will push higher gains to occur on the GBP/USD chart as well.
Price movement remained slow continuing trading in the Asian session this morning around 1.29700 which touched the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart.
To expect a higher rally, the price needs to break through the 1.30000 resistance first before recording the latest high since July 2023.
The target for a higher rise is towards the level around 1.31000.
However, if the price fails to continue to rise and instead reverses to make a decline, investors are likely to receive a signal for a change in the price trend.
The downward movement is initially seen to approach the 1.29000 level before a price reaction around that will be observed.
A drop lower would expect the price to head towards around 1.28000 or even lower.
In addition to the US retail sales data will be watched in the New York session later tonight, the market is also looking forward to the UK inflation data that will be published on Wednesday to assess the impact on the Pound.
