The performance of the Pound currency last week was seen as excellent compared to the US dollar when it displayed a bullish pattern reaching the latest 4-week high.
This shows a positive recovery for the British currency even though in early August, the central bank of England (BOE) lowered interest rates at its latest policy meeting.
Market movements for several weeks are seen to continue to be driven by changes in US dollar trading as investors' compass is towards the FOMC meeting this September.
With the expectation that interest rate cuts will be made by the Federal Reserve (Fed), the US dollar tends to experience depreciation and open up space for major currencies to strengthen including the Pound.
On the chart of the GBP/USD currency pair, the price has shown a continuous uptrend since the bounce from the 1.26000 support zone.
The price rally continued until the end of last week and is seen to have broken through the resistance level of 1.29000.
Price movement that remains above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart anticipates the price tendency to continue the bullish trend.
Modest gains were seen in the opening Asian session earlier this week and as of the start of the European session this afternoon, prices have been at heights around 1.29600.
The concentration level at the height of 1.30000 is getting closer to being reached with the entry of the recent high level will continue to be hunted by the price this week.
If the 1.30000 level is successfully passed, the next target is at 1.31000.
On the other hand, if the price reverses to make a decrease, it will be expected that the price reaction will occur around 1.29000 again.
A lower drop is a warning for a trend change for the price with the 1.28000 zone being the initial target if the decline continues.
