Without turning off last week's momentum, the bullish pattern continued on Monday's trading yesterday on the chart of the GBP/USD currency pair.
With the expectation of an interest rate cut by the Federal Reserve (Fed) being the talk of the market right now, the US dollar continued to experience a decline to a 7-month low.
The pound continued to take advantage of the opportunity to maintain a good performance against the US dollar since last week.
The jump in price from the 1.27000 zone was seen now approaching the height of the 1.30000 level after the price continued to rise until the opening of the early week yesterday.
However, the 1.30000 zone is seen as a resistance zone that prevents further price increases, with a horizontal price movement below that in the Asian session this morning (Tuesday).
Analysts see the upside potential as the movement remains above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart.
If the price wants to continue the bullish trend, the 1.30000 resistance needs to be crossed before the price registers the latest 5-week high.
The next target is to reach the height of 1.31000 but must first pass the level reached in July before around 1.30440.
Meanwhile, for the expectation of a price drop if it happens, the 1.29000 level is likely to be approached again.
However, the price passing the MA50 support will signal a change in the bearish price trend and the price can fall lower again as it was around 1.28000 before.
